How to file a 1099-S of a property I did not own

[KurtisK]

I have received a 1099-S for a property my grandparent owned after they passed away in 2015.

The property went up for tax sale in 2024 by the State to pay off the back taxes on the building and the amount over the back taxes was collected from the State by a lawyer and then distributed to myself and a couple of other family members and I have received a 1099-S for my portion I received from the state and the 1099-S was also filed by the local county government 

How or where do I file the 1099-S Proceeds from real Estate Transactions when doing my taxes.

[DianeW777]

File this 1099-S by selecting 'Other' when entering an investment sale.  Based on your comments, you did not live in the property as your home.

1. Your cost would be the value on the date of death of your grandparent x your percentage as beneficiary.
2. The selling price is on the 1099-S. 
3. The difference will be the taxable gain or loss.

To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.

[KurtisK]

I misquoted something in my original question

the property was sold in march 2023 not 2024

we did not get the tax overage until 2024

what will that change in the way to file

[JamesG1]

@DianeW777 correctly explains the procedure to be followed to report the IRS form 1099-S sale of the inherited home whether it took place in 2023 or 2024.

Are you saying that the IRS form 1099-S is dated for the wrong year?  Or are you saying something else?  Please clarify.

@KurtisK 

[KurtisK]

Sorry this seems complicated this maybe a fairly unquie situation

We did not own the property.

It was still in my grandparents' name even after their passing and the taxes after that was being paid my father who never put the building in his name

He passed a couple of years ago and the property was abandoned due to the large amount of back taxes that was owed

we did not sell the property, the State did back in 2023 we did not know there was an over payment until a year later near the end of 2024 when we had a lawyer get the over payment on behalf of my grandparent and it was divided among the remaining descendants

When I was trying to enter the investment sale I put in the date of the sale and it said I could only put in for 2024

what @DianeW777  said here I am also having some issues because of the 2023 date and other info which some of this is missing from the 1099-S but I contacted the county assessor's office to fill in the blanks

1) Your cost would be the value on the date of death of your grandparent x your percentage as

beneficiary.

I got the fair assessed value of the property from 2015 from the date of passing from the Assessors' office

Do I take that and Multiply (x) by my percentage which is 1/6th

also my 1/6th was the sell price, less the owed taxes not of the value of the property

2) The selling price is on the 1099-S. 

This here I had to get from the assessor's office as well it was not on the 1099-S but I have the sell price of what the state sold it for in 2023

All I have listed on the 1099-S Proceeds form real estate transactions is box 2 Gross Proceeds  which is my 1/6th portion of the tax overage

So this is why I am a bit confused on how to enter this

[DianeW777]

Yes, the cost basis and selling price is exactly what you indicate. 

• Use the fair assessed value of the property from 2015 from the date of passing from the Assessors' office.
• Multiply (x) by your percentage which is 1/6th. 
  • Do not use the taxes owed. If you can itemize deductions the taxes would be deductible, but not part of the sale.
• Use your portion (1/6) of the total selling price. If the property was sold for the delinquent taxes, then this will be your selling price.

If the property was sold in 2023 but you received proceeds in 2024, you should report the sale as though it was 2024.  You cannot enter a sale date of 2023 in a 2024 tax return.

@KurtisK