1099-S

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My father and stepmother bought a home in 1992 and it was put

in a land trust to be divided between 7 children. My father passed in 2009 and my stepmother was allowed to stay in home until she decided to sell. July 2025 she decided to sell. My siblings and I received 1099-S forms wanting to know how to file these when we do our taxes.

ReneV4

Level 8

If you are a trustee or beneficiary and you received a 1099-S in your name for the property that was in the trust, you will need to submit a Form 1099-S to the trust, showing you as the "nominee" and the trust as the actual recipient, with a copy sent to the IRS.

When you are preparing your own taxes, you need to show this "nominee distribution" from you to the trust, showing the trust as the actual recipient.

Steps for handling "nominee distribution" in TurboTax:
Enter the 1099-S information by going to Wages & Income
Click on Investments and Savings (not in the personal home sale section) and click Start
Click Add Investments, then select, Enter a different way
Select the box "Other" 1099-S (land, second home, personal items)
Follow the prompts. Since this will be only to "zero out" your 1099-S that should be to the trust, you would show equal amounts as proceeds and cost basis

You then need to prepare Form 1041 for the trust, with the associated K-1 for the beneficiaries, showing the proceeds were distributed and allocable to each beneficiary.

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