My husband and I had an investment partner in a rental property. In 2020 we finished construction on a primary residence and additional investment house. We sold the investment house and the third partner divested from the property and when finished, we closed on a new loan for the primary residence.
I received a 1099 showing that my main house, saying that I earned $225k from the sale, but that equity was just used as part of the loan. Do I have to report this as a sale? Do I need to even claim the 1099?
