All Forum Posts by: Will Dee

@Eamonn McElroy

I spent about a year renovating one unit while living in the other. Then moved into the other side renovating the side I lived in before. After that I rented it out on Airbnb.

@Natalie Kolodij

After the renovations I did rent out one side of the duplex on Airbnb. The notice seems vague on what I need to send in other that I agree or don’t agree. It says proof of your cost adjusted basis in the property and a statement of how I used the property and refer to Publication 523. By asking for a statement am I to write a letter saying it was my residence? Or that isn’t going to help?

I purchased a duplex Jan 2015 to live in and update. In October 2017 I sold the duplex. I ended up putting close to 40,000 in updates and repairs. I did not report the sale of the duplex on my taxes because I didn’t receive a 1099s and I believed because I lived in the house for greater than 2 years I’d be exempt from gains. I received a CP2501 stating I needed to report the sale of real estate. I am now not sure how to reply to this notice... do I write/ type up letter and mail it in with my response to the CP2501 then amend my tax return. Any advise is greatly appreciated.