Minh,
Could you kindly help me with something?
Some years after my ex-wife bought a home, I gave her a sum of money to pay down her mortgage balance and refinance her property. I took a minority equity interest in the property and was on title. She occupied it, I never did.
She sold the property in 2020 for less than she paid for it. I received a 1099-S showing gross proceeds much greater than my investment. On my CA form 593, I show a loss on my investment. If I only report the 1099-S on my Federal return, how will the IRS know that I lost money on my investment? I certainly would not want to have any tax liability.
Thanking you in advance!
Marcus
