Do I report full amount of Gross Proceeds on 1099-S if proceeds were split equally?

[paul_betz]

I received a 1099-S of a home I inherited . It has both my name on it and my uncle's name on it. The gross proceeds were $75,000 which was split 50/50 by the closing company at the time of sale. The 1099-S shows $75,000 while I received $37,500. I inherited the home while my uncle bought out my brothers interest in the home at the time for $10,000, so my uncle became part owner instead of my brother. Do I have to report the full $75,000 or just the $37,500 I actually received?  My uncle also has a copy of the 1099-S which he will report on his on his taxes.

[levisncap89]

Doesn't work that way. Both get allocated. The net is the same - $9,194.50 You are correct though. The closing agent is required to distribute separate 1099-S'es for each transferor. Did they not ask you about allocation before closing?

[paul_betz]

I'm not sure what you mean by allocated. The closing company did ask us how the proceeds were suppose to be split. They split the proceeds in half and sent it to two separate bank accounts, mine and my uncles. We did not receive a 1099-S until I ask the closing company about getting one a few days ago. The form they sent me is called "Substitute Form 1099-S". Can I have the company changed the 1099-S since it is wrong?

[paul_betz]

Update: I asked the closing company about it and they were able to send me a corrected 1099-S.

[levisncap89]

Only the gain is potentially taxable. What was the FMV of the home on the date of death?

[paul_betz]

The market value was was around $56,611 according to the property appraiser office at the time. If I have to report the full amount of $75,000 there was a gain. If I only have to report my half of the proceeds which was $37,500 then there is a loss. It looks like the closing company should have provided two separate 1099-S and put the actual amount we each received instead of putting it on one 1099-S.