Where do I enter income shown on my 1099-S?

[glemse]

Where do I enter income shown on my 1099-S on my tax return?

[bluedeb · Accepted solution]

Where do I enter Form 1099-S?

You may get a 1099-S if you sold your home, a rental property, stock in a co-op or any other real estate, including land, permanent structures, or standing timber on your land.

Sale of your main home

If the 1099-S was for the sale of your main home, it’s reported under Less Common Income in the Wages & Income section. Here's how to enter the form:

• Open or continue your return.
• Type sale of home in the Search box.
• Select the Jump to link in the search results.
• Follow the screens to enter the info from your 1099-S.

Profits of up to $250,000 ($500,000 on a joint return) on the sale of your home may not be taxable if it was your primary residence for two of the last five years. We’ll ask you some questions about the sale of your home to see if you qualify.

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-form-1099-s/00/26218

[kevindock]

I sold a rental property but did not receive a 1099-S. Do I need to get a 1099-S?

[Critter-3]

@kevindock 

You should have a 1099-S they are required and is probably in amongst the pile of closing papers.  However even if you didn't get one  you will use the info on the HUD/closing statement and sell the rental by following the screens in the rental asset section. 

https://ttlc.intuit.com/questions/1933977-i-sold-my-rental-property-how-do-i-report-that?jump_to=ans...

[erymelb]

: Where do I enter income shown on my 1099-S

by

erymelb

Thanks

[bluedeb]

@erymelb 

See my post above, it gives instructions on how to enter your 1099-S form.

[JohnB5677]

Form 1099-S is used to report proceeds from real estate transactions, to report the sale or exchange of real estate.

To enter a 1099-S

1. Go to Wages & Income
2. Scroll all the way down to Less Common Income  
   1. Select Sale of Home (gain or loss)
3. Continue through the interview, and post the information from the 1099-S

[Critter-3]

The 1099-S for has no ONE screen to report it on ... depending on what you sold the sale gets reported in different places in the interview.  @erymelb    So what exactly did you sell ??

[hillmah]

I inherited property that was sold and split between two people. would the sales proceeds be what i received?  Would the cost or other basis be the amount the property was worth?

[PattiF]

Yes, the sales proceeds would be the amount that you received. The other person would report their share of the proceeds on their return.

The basis for inherited property is the value on the date of death. You may be able to use the tax assessor's office or know some local real estate agents that can provide a better basis. Included in the basis will also be your share of the selling expenses. 

Other expenses like improvements and charges listed on the settlement statement are added to the basis.

Home improvements may come into play when you sell your home because they're included in your home's adjusted cost basis. The bigger your basis, the smaller your capital gain, and that means less tax.

To qualify as an increase in the adjusted basis when you sell, the home improvement must:

• Add materially to the value of your home; or
• Prolong your home's useful life significantly; or
• Adapt your home to new uses

Here are some examples of improvements:

• Remodels and room additions (including decks and porches)
• New or upgraded landscaping, irrigation, sprinkler system
• Hardscape such as pavement, block or retaining wall, patio
• Fencing
• Storm windows, doors
• New roof
• Upgraded wiring, plumbing, ductwork
• Central heating, AC, humidifier
• New furnace, water heater
• Filtration, soft-water, or septic system
• Built-in appliances
• New flooring or wall-to-wall carpeting
• Upgraded insulation

And some expenses that are listed on the settlement statement can be added to the basis. These include:

• Title fees
• real estate commissions
• documentary stamps
• credit report costs
• costs of an abstract
• transfer taxes
• home inspection
• flood certificate
• attorney fees, etc.  

@hillmah

[PerryStapleton]

You told how to inter 1099-s when selling main home, but not how to enter if it is a 2nd home. Can you tell me how to inter using your TurboTax Home and Business?

Thanks

[PattiF]

To enter the sale of a second home in TurboTax Home and Business, follow these instructions:

1. Open or continue your return in your TurboTax software
2. In the search box, search for sold second home and select the Jump to link at the top of the search results
3. Answer Yes on the Did you sell any investments in 2021? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the Did you get a 1099-B or brokerage statement for these sales? screen, select No
5. On the Tell us about this sale screen, select I’ll enter one sale at a time, and enter Second home (do this also for inherited homes) or Land in the Description box
6. Enter the remaining info for your sale and continue through the screens until you reach Here’s all the investment accounts we have so far
   • If you have more sales to add, select Add more sales

• @PerryStapleton

[dyanmcdaries]

We received a 1099S for a sale of a portion of the easement of our primary residence.

How is that handled within the tax software?

[RogerD1]

The payment you received for the easement is for you granting the right to the payor to use your property for certain uses such as a right-of-way for utility lines.  Those payments are not a "sale" but compensation for use of your property for their intended purposes.  The payment qualifies as a reduction in basis to your property and will not be taxable as long as the basis of the property is zero or greater.

As a simple example, let's say that you own a single family home on a residential lot that you bought for $100,000 - that would be the basis in your home.  If you received an easement payment of $10,000, that get's subtracted from the $100,000 basis to get your adjusted basis of $90,000.  Once you sell your property, you'll use this basis (along with other adjustments to it) to determine the gain on sale.

Here's how to enter the 1099-S in TurboTax online:

1. Click on Federal on the left side menu, then Income, then Wages and Income Summary.
2. Scroll down to Investments and Savings and click on that section to expand it.
3. Click on Start or Revisit for Stocks, Cryptocurrency, Mutual Funds, Bons, Other (1099-B, 1099-DA)
4. Click Yes on Did you have investment income in 2025?
5. Click Enter a different way on the next screen
6. Click Type it in myself on the next screen
7. Select the Other tile on the next screen
8. Enter the name of the Financial institution on the 1099-S , then Continue
9. On the Now, enter one sale for [financial institution] screen:
   1. The type of investment will be Land (personal use)
   2. How did you receive this investment? - select I purchased it
   3. For Description enter a description of the land sold for the easement
   4. Enter the date for when your purchased your home in the When did you receive this investment?
   5. Date sold or disposed will be the date you received the payment in 2025
   6. Proceeds will be the amount of proceeds listed on the 1099-S
   7. Enter an amount equal to the proceeds in the Total amount paid box, then click Continue
10. Click None of these apply, then Continue on the next screen

This will get your 1099-S reported to the IRS on your return as a non-taxable event.  Just remember to adjust the cost basis of your home downward by the 1099-S proceeds for when you eventually do sell your home.