The 1099-S can be entered under
Wages & Income
Less Common Income
Sale of Home (gain or loss) START
The difficult part will be determining how much was profit, since that will be based on her adjusted basis.
In 2018, did she inherited the property?
Do you have any idea on the Fair Market Value of the home at that time?
If she inherited it, her adjusted basis would be that value.
If the home was worth 100,000 in 2018 and your mother inherited it, her adjusted basis would be 100,000
If the loan on the property was 75,000, the 1099-S would be reporting the difference of the sale less the loan.
So if the property sold at 120,000, the 1099-S would report 45,000 but only 20,000 would be Capital gain.
If the home was worth 100,000 in 2018 and your mother inherited it, her adjusted basis would be 100,000
If the loan on the property was 75,000, the 1099-S would be reporting the difference of the sale less the loan.
So if the property sold at 90,000, the 1099-S would report 15,000 but it would really be a 10,000 loss.
(it sold for 90,000 the lender took 75,000 so your mother gets 15,000 but it sold for 10,000 less than her basis, so for her it was a loss)
Since it sold at excess of the loan, your mother does not claim any canceled debt as income.
Another issue would be if she owned and lived in the home for at least two of the five years preceding the sale.
In that case, she could exclude up to 250,000 of the gain.
HERE are links that might help
Pub 544 Sale of assets
Pub 523 Selling you home
TurboTax tax tip for foreclosures
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