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Input Sale of Residential Property Using 1099-S and Sellers Settlement Statement
Aloha,
I've been spending all night trying to figure out exactly which numbers to input and where. The situation is, I own 50% of this property located in the State of Nevada. As you may be able to tell, we're residents of Hawaii. We sold it in March of 2020 and was able to collect one month worth of rent in January before it was listed for sale. Paid a little bit of mortgage interest. Though, not relevant to the story.
Sellers Settlement Statement has sale price of property at $288,000. The 1099-S sent reflects $144,000 in box 2 (not split into 50%). The difference between the two is the mortgage principle, commissions, transaction fees, recording fees, escrow charges, new loan chargers, and seller's credit to buyer's closing costs.
Under Property Profile, I clicked the following:
- Is this a Rental Property or Royalty?
- Selected "Rental Property" named as "Second home that I rent out" and inputted address of property.
- What Type of Rental?
- Selected Single Family Home.
- Do any of these situations apply to this property?
- Under sold, selected "I sold or disposed of this property in 2020."
- It then notes: You'll enter details of this sale when you reach the depreciation section later."
- Under sold, selected "I sold or disposed of this property in 2020."
- Was this property rented all of 2020?
- Selected No. Rented for 31 days (month of January).
- Property Ownership
- Selected No, I owned less than 100%.
- We can automatically divide your income and expenses for you.
- Yes, I will enter total amounts.
- Ownership percentage: 50%
- Yes, I will enter total amounts.
- You indicated you actively participate.
- Yes. I am an active participant.
- Did you pay anyone more than $600 for work related to this property?
- No, I did not pay for work that required a form 1099.
- Let us enter rental info for you.
- Enter rental info myself (I don't have any of those programs or resources to self populate data).
- Is your property in any of these designated areas?
- None of the above.
Sale of Property/Depreciation
- Do you want to go directly to your asset summary?
- Yes, I want to go to my asset summary.
- I have one residential listing.
- Selected "edit"
- Review Information
- Date: 6/1/2015
- Residential Rental Real Estate
- Cost: Autofilled with number higher than my original 2015 input
- Land: Autofilled with number higher than my original 2015 input
- Business: 100%
- Prior depreciation: $24,007
- Did you stop using this asset in 2020?
- Yes.
- Disposition Information
- Date of Sale: 3/16/2020
- Date Acquired: 4/29/2015
- Special Handling Required?
- No.
- Home Sale
- No.
- Sales information (this is where I get stuck)
- Asset Sales Price:
- Asset Sales Expenses:
- Land Sale Price:
- Land Sale Expenses:
Is the 1099-S and Sellers Settlement Statement enough to fill out the above with the autofilled ratio of cost to land? If so, how would I use that information in a way to properly allocate asset vs. land price and expenses?
I noticed it's not written in the form of Sale Price of Property (from sellers settlement statement) less cost basis (from autofilled cost in Review Information) so there must be more to it - though, that would make the most sense to me in the sense of capital gains tax. What am I missing here? Do we also need to reach out to our agent to get proper asset to land ratios?