@tonyiiiafl wrote:
There were 5 children who each received a share of the sale, and my wife received a 1099-S for the total amount. How do we handle this 1099-S? Is it taxable income? Do we split the amount between the 5 recipients?
Did the 1099-S your wife received have the EIN of the estate or your wife's SSN?
If the 1099-S had the EIN of the estate, a Form 1041 will have to be filed to report the gross proceeds of the sale the estate received to the IRS. If there was a loss on the sale, and the property was not being held for personal use, the beneficiaries may be able to deduct that loss (pro rata).
If the 1099-S had your wife's social security number on it, then she will have to report the transaction on her personal income tax return and then indicate that she received a portion of the proceeds as a nominee. TurboTax does not support reporting a transaction for which a 1099-S is received as a nominee.
