Thanks for your help, but please discuss/advice further! I know I should claim all, but the two 1099-S caused all the problem. It seems he and me will be audited anyway (I defiantly hope not). There seems no way for me to correctly file with all the truth. The IRS help hot line person told me that anything beyond standard IRS forms attached to my filing will be through out without reading. Since the total deal was a lose, Can my son file for $1 lose by putting in less than 50% of the cost (the 1099-S amount +$1, The Turbo tax do not asking for 1099-S info in case of gain, but allowing reporting 1099-S in case of lose) and I file for the balance (file the cost not 50/50 but total less what my son will file)? In that case, if there is an audit to my son, the disputed amount would be very small. If IRS going to audit me, too bad, I was the one did not reject the title company cast the checks and issue 1099-S. I and my lawyer asked for one check, but they would not do it. Since I was so happy to get ride of the house and has bank account to make the money go to my own account right away, I deposited it that day. Sham on me!
By the way, my son was second year in med school when we bought the house. The house was not rent out until three years later when he graduated and left. He was not my legal dependent by then.
One of the 1099-s is under his name with his SS number. I understand that he cannot give to me but has to file in his tax return. Please correct me if I am wrong.
Tried to call IRS to make another appointment in field office: they are too busy to answer any call, with a message asking me to call "another day"!
