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laash
New Member

Co-borrower on property that was sold to buy a new property

My daughter owned a condo that I was a co-borrower on the mortgage.  She owned for approximately 10 years.  She sold the condo  in 2021 and purchased a new home.  I am not on the new mortgage.  I received a 1099s for the capital gain of the property.  I did not receive any funds or use any funds.  They were all used in the purchase of her new home.  How do I put this in my taxes?  I should not have to claim any capital gains since I didn't get anything.

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1 Reply
MaryK4
Expert Alumni

Co-borrower on property that was sold to buy a new property

Sometimes the 1099-S is issued to the wrong person or they issue it to two people for the total amount on each.  

 

"For multiple transferors of the same real estate, you must file a separate Form 1099-S for each transferor. At or before closing, you must request from the transferors an allocation of the gross proceeds among the transferors." Instructions for Form 1099-S (01/2022)

 

You can contact the issuer as request they correct it, but they rarely do and you cannot force them to.

 

If your daughter received the same 1099-S and reported the sale on her tax return there should be no problem.  

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