Your son is required to report the sale on his tax return since he was the owner of the house. If the Form 1099S reported the entire sale proceeds on both of the forms you each received there should be a correction from the company that issued them.
If each of you show half the sale proceeds on each of your Forms 1099S, you can nominee your portion to him to eliminate IRS questions later. There is nothing to report on your tax return.
Follow the instructions below to nominee your portion to your son.
Nominee
returns. Generally, if you receive
a Form 1099 for amounts that actually belong to another person or entity, you
are considered a nominee
recipient. You must file a Form 1099
with the IRS (the same type of Form 1099 you received). You must also
furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form
1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue
Service Center for your area.
- On each new Form 1099, list yourself as the payer and the other owner, as the
recipient. On Form 1096, list yourself as the nominee filer,
not the original payer. The nominee is responsible for filing the
subsequent Forms 1099 to show the amount allocable to each owner.
The forms filed with the IRS should be
the red copy so if you don't have a color printer, go to the IRS website and
order the forms here: Click here to order forms or publications from the IRS.
