I received a 1099-S form for the (long term) sale of a second home. The form does not include cost basis info. The gross proceeds (box 2), does not account for the basis, improvements or sales expenses.
The TurboTax instructions say "If you received a 1099 form for this other investment sale, you should enter that information here. If you did not receive a 1099 form, enter the info as required".
The page prompts me to provide the "Total amount paid".
On other discussion boards it has been stated that one should enter the sum of the original basis, improvements and appropriate sales costs in the "Total amount paid" box. However, I am questioning if this is accurate.
If I enter "0" for "Total amount paid", on the next page I am asked to add "Sales expenses not on 1099‑S or statement". If I enter a dollar amount here, and switch to Form 8949, Form 8949 has adjustment code E (the code for long-term transactions where the basis was not reported to the IRS).
So, I believe I should enter "0" in the "Total amount paid" box, and then enter the sum of my original basis, improvements and sales expenses on the next page for "sales expenses not on 1099-S". This approach would appear to make the entry be consistent with Code E (basis not reported).
Does this seem appropriate?
Thank you.
