I will answer your questions with a breakdown. The good, the bad and what you need to do for reporting on your return. The good:
- Thankfully, your form say For Benefit Of and is correct.
- You would not normally claim the sale since it was inside your IRA with no taxable gain to you.
- The company is required to send the 1099-S and they did.
The bad:
Since the 1099-S has your social security number on it, the IRS will notice. You can wait for them to send a letter or be proactive and clam the sale.
Reporting:
The sale: I suggest you enter the 1099-S on sch D as sale of land under investments. Enter the $75,000 as proceeds and $75,000 as basis since it is NOT taxable to you. See Where do I enter investment sales?
The rollover:
- Reported on 1040, line 4a - I am assuming the fees to sell the land and the land came out of the IRA
- Line 4b is zero and is a rollover.
- Enter this in the IRA section. See Where do I enter an IRA rollover?
Caution: The RMD- be sure you took the full RMD for all IRA accounts including the new value.
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