topic Re: Form 4797 ? in Get your taxes done using TurboTax

Form 4797 ?

pwcramer — Sat, 01 Jan 2022 17:58:40 GMT

I have a multimember LLC that finances the construction of residential homes. We sold our first home in 2021 and will receive a 1099 S from the title company for our share of the proceeds. As I'm roughing out taxes it seems to me that I need to report the gain on form 4797 Part II but I can't seem to get TT to let me do this. So I guess my question is where/how do I report the info from the 1099 S?

Re: Form 4797 ?

Mike9241 — Sat, 01 Jan 2022 18:22:38 GMT

am i correct that by financing you mean the LLC provides the funds to buy the land and finance construction? if so then your trade or business is the construction of homes. what you are selling is inventory. that gets reported on page 1 of 1065 and is ordinary income. the cost of construction would go under cost of goods sold.

Re: Form 4797 ?

Anonymous_ — Sat, 01 Jan 2022 20:11:18 GMT

I agree with @Mike9241, if that is, indeed, the activity in which you are engaged.

Regardless, whatever you are doing with your multi-member LLC, you are going to need TurboTax Business to prepare a 1065 for the entity; you cannot use a personal version of TurboTax for your purposes.

Re: Form 4797 ?

pwcramer — Sat, 01 Jan 2022 20:15:06 GMT

Yes, your description is accurate. I understand what you are telling me and I have all that data and can enter it, but then I just ignore the 1099 S I will be receiving for the sale of the finished home?

Re: Form 4797 ?

Anonymous_ — Sat, 01 Jan 2022 20:40:31 GMT

There is no 1099-S form programmed in TurboTax so simply enter the figures relevant to the transaction, such as gross proceeds, selling expenses, adjusted basis, etc.