topic Form 1099S Question in Deductions & credits

Form 1099S Question

RRRichard — Mon, 09 Mar 2020 14:27:55 GMT

How do I report income from the Form 1099-S?

Re: Form 1099S Question

DoninGA — Mon, 09 Mar 2020 14:33:58 GMT

What was sold so that you would have received a Form 1099-S?

Primary personal residence, Second home, Land, Rental property, commercial property, something else?

A Form 1099-S is not entered directly on a tax return.

Re: Form 1099S Question

RRRichard — Thu, 12 Mar 2020 17:24:57 GMT

What was sold so that you would have received a Form 1099-S?
Primary personal residence, Second home, Land, Rental property, commercial property, something else?
A Form 1099-S is not entered directly on a tax return.

I received a 1099-S Form from the pipeline company for an easement to cross my property with their underground pipeline.

Re: Form 1099S Question

JohnB5677 — Thu, 12 Mar 2020 18:29:54 GMT

This should be posted in the investment section:

Start with INCOME
I'll choose what I work on
Scroll down to Investment Income
Select Stocks, Mutual Funds, Bonds, Other
Add sales
No you did not get a 1099-B
Choose the type of Investment you sold (Everything Else)
Enter Description, Sale price and Date Sold
You probably originally purchased the property
The Cost Basis may be calculated as a % of the total property, also enter date of purchase.

Re: Form 1099S Question

chasvt1 — Mon, 30 Mar 2020 14:39:37 GMT

I rec'd a 1099S for sale of timber - also have depletion allowance to take against this income

Where/how do I enter this info for taxes?

Re: Form 1099S Question

DianeC958 — Mon, 30 Mar 2020 15:18:23 GMT

You enter this information in

Wages & Income
Investment Income
Stocks, Mutual Funds, Bonds, Other

When the program asks if you received a 1099-B for this sale, the answer is no.

Then you will see a list of items to choose from, you pick Eveything Else.

For your cost basis, most people will enter a 0, but you could enter what you originally paid for the seedlings or saplings. You claim your depletion amount as a cost of the sale.

Where do I enter income from a timber sale?

Publication 535-Business Expenses-Timber

@chasvt1

Re: Form 1099S Question

fdc1 — Fri, 10 Apr 2020 07:39:14 GMT

I received a 1099-S from an electric co. for an easement to cross my property with their fiber optic cable.

Did you figure out how to declare it? I sure would like to know how you handled your 1099-S from the pipeline? Would you be willing to share what you did with me?

Re: Form 1099S Question

DavidS127 — Fri, 10 Apr 2020 13:22:07 GMT

Permanent easements are treated as a property sale. If this is your personal property, report the sale in the TurboTax section Income>>Investment Income>>Stocks, Bonds, Mutual Funds, Other. Answer that you did not get a 1099-B, and then follow the TurboTax instructions carefully. If it is business property, you report it as the sale (disposition) of a portion of that business asset (Land).

In both cases, your "cost basis" is the cost of that portion of the land that is subject to the easement. You will likely need to calculate this based on the total cost of the parcel land and the percentage of the total parcel that is subject to the easement. You must then reduce the cost basis of the land you still own. See the section of IRS Publication 551 at this link for more information.

Temporary easements are treated as rental or lease income in the Rentals section of TurboTax.

Re: Form 1099S Question

CEILinda — Sun, 21 Feb 2021 20:26:34 GMT

I am using Turbotax Premier, 2020. These instructions don't seem to work here. Any ideas how to enter and 1099-S, ROW Easement proceeds?

Re: Form 1099S Question

PattiF — Sun, 21 Feb 2021 22:16:35 GMT

Here's how to report the 1099-S for the ROW Easement. The 1099-S is an informational form and is not reproduced in the tax return

The easement - Form 1099S:

Generally, you do not report the income for granting an easement. You reduce your cost basis in the property by the proceeds received

Report the gross proceeds from the 1099-S, and then enter your cost basis as the proceeds (the same amount from the 1099-S). Then your taxable gain is 0.

But because you got a 1099-S, the IRS will be looking for it on your tax return.

Enter the 1099-S proceeds as follows:
Go to Federal Taxes.
Wages and Income.
Investment Income.
Stocks, Mutual Funds, Bonds, Other.
Click on either Start or Update.
Answer NO to Did you get a 1099-B or a brokerage statement for these sales?
Choose 'Land' as the type of investment you sold.
Enter the remaining details for the sale your property and continue through the onscreen questions until you get to the 'Enter Cost Information' screen.
Click the attachment to enlarge and view

Remember to reduce the basis by the amount of the right-of-way payment only. This basis will be used when you sell the property.

Re: Form 1099S Question

CEILinda — Sun, 21 Feb 2021 23:08:30 GMT

Thank you for getting back to me.

This seems to be working. 🤗

Re: Form 1099S Question

LJBLAINE — Fri, 19 Mar 2021 22:05:37 GMT

COUNTY TOOK AND PAID FOR AN EASEMENT

Re: Form 1099S Question

Cynthiad66 — Sat, 20 Mar 2021 01:24:00 GMT

Good news is that the easement income you received is not income to you if it is less than the cost of the land. It does however reduce the cost (or basis) of the land, when and if it is sold.

If this is the case, the payment is reported in the Investment section and the cost would be the same as the income, ie, no gain or loss.

See the following similar question I answered earlier on this topic. If this does not answer your question, please post a comment and I can help.

Re: Form 1099S Question

pack1971 — Thu, 08 Apr 2021 17:13:51 GMT

The 1099-S was received as a result of selling land that was inherited

Re: Form 1099S Question

JohnW152 — Thu, 08 Apr 2021 17:47:28 GMT

@pack1971

To enter the 1099-S data for proceeds received from inherited land in TurboTax Online,

In the Search box on the upper right, search for 1099s, sale of property other than main home
Click on Jump to 1099s, sale of property other than main home
On the Your investment sales summary screen, click on Add sales or Add more sales
On the OK, what type of investments did you sell? page, click on Other and Continue
On the Tell us more about this sale page, enter the institution that issued Form 1099-S
On the Now we’ll walk you through entering your sale details screen, enter Land (personal use) for type of investment; enter I inherited it for how you received it. Answer the rest of the questions appropriately.

Re: Form 1099S Question

whitfieldra — Mon, 17 May 2021 00:09:38 GMT

I received a 1099-S for the sale of my townhouse ins Nevada, what am I supposed to do with it for tax purposes?

Re: Form 1099S Question

Hal_Al — Mon, 17 May 2021 00:25:58 GMT

It depends on what the townhouse was used for.

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)

- Wages & Income

All Income Show More

Scroll down to:

-Less Common Income

- Sale of Home

Re: Form 1099S Question

Macy522 — Sun, 30 Jan 2022 11:53:43 GMT

The part where you said "Most people put in 0 for cost basis", I thought Cost basis was the amount you originally paid for the house/land/ whatever you are reporting you then sold. So how could anyone put 0 there?

Can you please explain what they are really asking for when they mention "cost basis" so I know what they are referring to, and IF I need to put 0 there or not as well? I am clearly confused.

Re: Form 1099S Question

Hal_Al — Sun, 30 Jan 2022 12:04:06 GMT

@Macy522 - Yes, 0 would be wrong for the sale of most (almost all) capital assets. But @DianeC958 was responding to a question about Timber Sales, specifically . Cost basis for timber is usually zero. Timber basis is not the cost of the property. For a discussion on Timber Basis, see https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_2.pdf

Re: Form 1099S Question

Macy522 — Sun, 30 Jan 2022 12:18:18 GMT

I came to this question because it was about cost basis, sorry I am talking about sale of home and land in my situation. Can you please explain what cost basis means, what are they asking for in My situation?