DO I NEED TO REPORT ALL GROSS PROCEEDS IF I WASN'T THE ONLY SELLER?

[tsanchez2]

ON A FORM 1099-S ALL THE GROSS PROCEEDS WERE ASSIGNED TO ME AND THEIR WERE 5 DELLERS

[DaveF1006]

No.  You can split up the income amounts listed on the 1099S and report your distribution of the proceeds. 

[tsanchez2]

so my 4 sisters have already filed taxes and the 1099-S they received all had a zero "0" for gross proceeds mines was the only one with the total amount of sale which we split five ways it was my parent's home and they both are deceased, but no will was left and we all signed a affidavit of heirship and the closing docs have all 5 of us listed as sellers....so the title company sent me and the IRS all the proceeds directed to me

thank you

[DianeW777]

No, you do not have to report the full sale.  You can choose to report it with little to no change on your tax return if the following applies to you.

Inherited property receives a 'stepped up' cost basis.  This means that your cost is the fair market value (FMV) on the date of death. If the property was sold shortly after death, then the selling price and cost basis will be close to equal. And you can use selling expenses as well.  In this situation there would be little to no tax change on your return.

You can choose to nominee the sister's portions if the aforementioned does not apply to your situation.  See the instructions below.

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. (Provided on the Form 1096)

• 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.
  • Form 1096
  • Form 1099-S

Note: If you did live in the home as your main home or were a part owner before death (seems as though you did simply inherit the house), then it could have a different tax outcome.

@tsanchez2