2006 TaxAct Irs Schedule - Problem
Q.I've used TaxAct Deluxe for several years with no negative issues. In 2006, we sold a second home and incurred a $6,000 loss. TaxAct offers guided input for sale of a "main" home, not of a 2nd home - I tried inputting as if it was a main home but the resulting loss won't transfer to a Schedule D. The only way I can find to generate a Schedule D is to create a 1099-B, which transfers cost and sale amounts to Schedule D, Line 8, and the $6,000 loss to column f of that line. IRS Schedule D instructions tell me to enter zero in column f of Line 8 because the loss is not deductible. My attempt to enter zero via override generated a TaxAct warning that my return can't be e-filed if I override. Attempts to enter amounts directly to Schedule D result in the same no e-file warning. I've requested additional guidance from TaxAct support and am awaiting their response. Is this a problem specific to TaxAct? Any experience with other software that will allow me to e-file when reporting a nondeductible capital loss?
A.Two ways: (1) Instead of putting actual basis in the "basis" field, put the sales proceeds in the "basis" field so the gain/loss is zero. The IRS doesn't particularly care with the basis is so long as sales proceeds match what was reported to them and that the reported gain/loss is correct (and in this case zero is correct since the loss is non-deductible). (2) Leave the loss as is but create a new dummy sale entry with $6000 of proceeds and zero basis to offset the unallowable loss. This will result in your return showing $6000 more in total proceeds than were reported to the IRS, but the IRS doesn't care about that (they only care when proceeds on your return are *less* than what was reported). Given that the IRS instructions (you say) say to report the sale but put a zero in the gain/loss field, I'd go with (1).
Other Questions :
ebay feedback tip off to IRS audit?
Need your input for a news report on IRS audits of eBay sellers. Has anyone been tapped for an audit because of high eBay feedback showing many sales/purchases?This sounds kinda alarmist to me. I don't know what active investigations are under...
I have a question about Tax Bracket Irs in April 2006
I have a question about Tax Bracket Irs in April 2006 If I win a jackpot say over the $1200.00 "tax-free" limit, am I still subject to paying the IRS taxes as if I were an American Citizen? Is there ANY provisions which allow for n...
OT: IRS back tax and land ownership
I need a question answered about IRS back tax and land ownership. Where do you think I could find the answer? (I would rather not talk to IRS.) The problem is this: I want to buy a small piece of land. The owner has not paid taxes in many yea...
Question about Irs Mileage Rate
Everybody seems to be using the word 'partner' here, which seems to indicate ownership of the company. What if I'm just a lowly employee who needs to go on a business trip. If I (on my own prerogative... i.e. I could have driven or flown co...
Solve your debt from IRS debt help.
I am a hard-working college student heavily in debt with student loans. I have been searching for a way to make additional money while still concentrating on my studies .I'm looking for Irs debt help .Does anyone can give me some usefull inform...