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Do I state that I have sold a house if I received no money?. The house was titled to my son and myself and at closing all money went to my son

 
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2 Replies
HelenC12
Expert Alumni

Do I state that I have sold a house if I received no money?. The house was titled to my son and myself and at closing all money went to my son

If you didn't receive form 1099-S, or the 1099-S is not in your name or Social Security Number (SSN), no, you don't have to report the sale of the home.

 

If you receive Form 1099-S Proceeds From Real Estate Transactions in your name and Social Security Number, the IRS matches the amount on the 1099-S form to the amount reported on your income tax return. If 100% of the sale proceeds is under your SSN, you have two options on how to report this. 

Option #1:

  1. Report 100% of the proceeds.   See Where do I enter Form 1099-S? or if you didn't get a 1099-S form, see Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?
  2. The other people won't have to report the sale on their income tax return.
  3. For additional information see TurboTaxMichaelL1's answer here.  

Option #2:

When you receive a Form 1099-S for amounts that actually belong to another person or entity, you are considered a nominee recipient. You should file a Form 1099-S with the IRS (the same type of Form 1099 you received).  File the new Form 1099-S with Form 1096 (this is a transmittal for the 1099-S) by mailing to the Internal Revenue Service Center for your area.

  1. On the new Form 1099-S, list yourself as the payer and the other owners, as the recipients.
  2. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099-S to show the amount for each owner.
  3. The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:  Click here to order forms or publications from the IRS.
  4. For additional information see TurboTaxDianeW's answer here.  
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Do I state that I have sold a house if I received no money?. The house was titled to my son and myself and at closing all money went to my son

It depends on more details.  You may need to have your taxes done by a CPA.

 

Was this an investment house or your son's home?  Did you have money invested in it or were you only on the deed to help your son acquire the home or mortgage.

 

If it was an investment house, the taxes can "follow the money". That is if your son got it all, he can report all the gain.

 

However if he is claiming the home sale exclusion, he cannot not use that on your half of the gain.  You have made a gift of equity to him and are responsible for your portion of the gain on the sale.

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