Subject: Trouble Reporting Home Sale on 1099-S When I Received $0 Proceeds (Divorce-Related)
I'm using TurboTax Deluxe 2024 to file my 2024 return and am running into a problem with reporting a home sale.
Background:
I divorced in 2024.
TurboTax recommends I file as "Single."
Before the divorce was finalized, my ex-spouse and I sold our jointly owned home.
Per the divorce judgment, I received $0 proceeds from the sale.
The 1099-S I received reflects $0 in proceeds, as expected.
The Issue:
TurboTax asks if I received a 1099-S. When I say "yes," it forces me to enter all home sale info: purchase price, sale price, address, etc.
Nowhere does it allow me to indicate that I received no proceeds or had no capital gain.
On Schedule D, Worksheet 1 (d), it labels the field as “Proceeds (selling price),” which adds confusion — "proceeds" and "selling price" are not the same in this case.
I tried to adjust the sale info or basis to reflect that I had no financial gain, but TurboTax still calculates a large capital gain and taxes it.
I am not claiming the $250,000 exclusion — I just want the sale properly reflected as generating no gain to me.
Support Experience:
My Questions:
Has anyone dealt with a similar situation (divorce + 1099-S + no proceeds)?
How did you report it properly in TurboTax?
Is there a way to enter an adjustment (e.g., Code "O" or similar) to offset the gain on the home sale?
Any help or clarification would be appreciated. Thanks!
