Property sale
I sold a house last year and if I were to file this year I’m going to owe quite a bit of money. How do I legally avoid this?
1) You need to learn the tax code and understand why it is or isn’t taxable. Join the mailing list for some information on that.
2) If someone files a 1099, like a broker or realtor, and you believe that this was done in error, you will need to notify the IRS as such when you file. You can ask the IRS for a copy of your transcript to find out which 1099s were sent.
3) If no 1099 was sent and it’s not taxable under the law, then you are not required to include it on your return.
I emphasize understanding the law because it is not enough to just take someone’s word for it whether something is taxable or not. You are the one who knows all the specifics about your situation and whether or not the tax applies. There’s a 99% chance it doesn’t.
Most of the laws around criminal filing, non-filing, and evasion depend on willfulness. Willfulness is voided if you believe you are acting in accordance with the law. It is not enough to just not want to pay the tax.
