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gml41
New Member

Dot took property and paid for damages then sent 1099-s do i PAY TAXES?

 
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Accepted Solutions
Coleen3
Intuit Alumni

Dot took property and paid for damages then sent 1099-s do i PAY TAXES?

Since you got the 1099-S , it must be reported on your tax return, but it is probably not taxable.

Report the 1099-S amount as sale proceeds, then show the same amount  as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale. 

TurboTax does not have an entry point for a 1099-S (other than home sale). So, in TurboTax, enter at:

  • Federal tab
  • Wages & Income

Scroll down to: Investment Income

  •    Stocks, mutual funds, Bonds, Other (Real estate is other)"

View solution in original post

1 Reply
Coleen3
Intuit Alumni

Dot took property and paid for damages then sent 1099-s do i PAY TAXES?

Since you got the 1099-S , it must be reported on your tax return, but it is probably not taxable.

Report the 1099-S amount as sale proceeds, then show the same amount  as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale. 

TurboTax does not have an entry point for a 1099-S (other than home sale). So, in TurboTax, enter at:

  • Federal tab
  • Wages & Income

Scroll down to: Investment Income

  •    Stocks, mutual funds, Bonds, Other (Real estate is other)"

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