Yes - you are a nominee recipient for your sister's half of the proceeds and should issue a 1099-MISC to your sister. The 1096 form is a cover sheet sent to the IRS along with the 1099.
Enter the full amounts listed on the 1099-S in your return. You can enter the nominee adjustment in the Less Common Income section in TurboTax using these steps:
- Click on Federal > Wages & Income
- In the Less Common Income section , click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-COn the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income.
- On the Any Other Taxable Income? screen, click the Yes box.
- Add your sister's amount as a negative number and put nominee adjustment as the description on the next screen, Other Taxable Income.
- This amount will appear on line 8 of the 1040 (Other Income from Schedule 1).
Since you only have one form to prepare, you can download the forms and instructions from the IRS website:
