I sold a condo.I did not live in it and it was strictly for a profit. The money went in my bank account. I did no investing.I paid the IRS upon receiving my money. Why did I get taxed again when I filled my return?
Can you get your taxes done twice in one year or at least have them checked for errors?
2007-02-28 06:53:36 · 2 answers · asked by Doll D 2 in Business & Finance ➔ Taxes ➔ United States
You didn't get taxed twice. If you paid in any tax when you sold the condo, it was an ESTIMATED tax payment. When you prepare your tax return, you settle the bill with Uncle Sam. If you didn't pay in enough through estimated payments and withholdings, you are short and have to pay. You are only being taxed once.
2007-02-28 07:08:30 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Who ever did your return did it wrong. The payment you make when you put the money in the bank should of been on your 1040 as a credit of taxes paid. This increases the amount the IRS has on record for you. The additional taxes due as a result of the transaction during the year, would balance this payment to "0".
Thus your taxes are paid only once. If there was additional taxes due, you would know it was additional. If you paid too much to begin with, you would get a tax refund. Perhaps all is well and someone need to explain the 1040 to you so that you know what is happening.
2007-02-28 07:15:57 · answer #2 · answered by whatevit 5 · 0⤊ 1⤋