Does the 1099-S include the "entire" proceeds from the sale? Or only your share of the proceeds? I am also assuming that it's your SSN on the 1099-S.
Also, understand the 1099-S shows the proceeds paid out at the closing, and does not always include the entire gain. For example, if some of the gain from the sale was used to pay off an existing mortgage, the payout funds are not always included on the 1099-S. But the payoff is still reportable gain.
The fact that you received a 1099-S with your SSN on it means that you are required to report this sale, no matter what.
This is not simple, and since depreciation recapture is required here, I'm honestly not sure how to handle this. Since you are not the one who took the depreciation, it is not correct for you to recapture it. Add to that, you're dealing with a state return, then add to that it's a NY state return. I would prefer to bow out at this point and let another deal with it. Preferably someone from NY or someone more familiar with NY state taxes.
