Capital gains tax?

[steveinbsas]

Here is the URL for Taxact Online:

http://www.taxactonline.com/

 

[Ries]

I believe there is a provision in "Obamacare" that requires a 1099 be filed by anyone paying another party in the US $600 dollars or more. If the buyer of the apartment is from the USA they may be required to do so unless there is an exemption for real estate transactions. If the buyer is from outside the US and there is no 1099 filed I think the chance for an audit might increase significantly.

The 1099 requirement never was instituted- it was removed from the law well before it was scheduled to begin, so it never applied to anyone.
http://www.accountingtoday.com/news/Congress-Votes-Repeal-1099-Requirements-57922-1.html
It was voted out of the law in April, and wasnt scheduled to even begin until 2012.

One thing I would point out though- even if you have zero income, if you are a US citizen, its smart to file an IRS return every year. It leaves you a paper trail that makes it much less likely you will be audited than if you show up with no returns for several years and suddenly begin filing again.

 

[steveinbsas]

The 1099 requirement never was instituted- it was removed from the law well before it was scheduled to begin, so it never applied to anyone.
http://www.accountingtoday.com/news/Congress-Votes-Repeal-1099-Requirements-57922-1.html
It was voted out of the law in April, and wasnt scheduled to even begin until 2012.

One thing I would point out though- even if you have zero income, if you are a US citizen, its smart to file an IRS return every year. It leaves you a paper trail that makes it much less likely you will be audited than if you show up with no returns for several years and suddenly begin filing again.

Thanks, Ries.

It just occurred to me that the seller's bank will still be required to report any deposits over $10,000 to the IRS.

If he hasn't been filing returns for several years that might increase scrutiny, but if he keeps good records he shouldn't have to worry.