What do i do with a 1099-patr? turbo tax throws me into a schedule-c but i did not run a business.

[rmcgill01121958]

I bought property in 2015 with the intent of boarding horses. It got to time consuming to  maintain and i could not afford necessary equipment. I sold the property in 2016 without making a go of it. My lender sent me a 1099-PATR and i dont know what to do with it. Can you help?

[Fern · Accepted solution]

You need to reduce your cost basis of the property sold by the amount of dividends reported on the 1099-PATR. This will affect your gain or loss on the sale. The 1099-PATR itself will not be reported in your tax return.

The instructions for form 1099-PATR state “Any dividends paid on (1) property bought for personal use or (2) capital assets or depreciable property used in your business are not taxable. However, if (2) applies, reduce the basis of the assets by this amount.”