I received a 1099-S as a nominee recipient for the sale of a second home. All proceeds were split between four family members, and I kept none. Can I use TT for this?

[michaeljee]

I have mostly completed my federal tax return using TurboTax as I have for many years and have some tax due.  My goal is now to address the sale of a second home as a nominee recipient and ultimately end up with the same tax due when I finish since all proceeds went to other family members.

1.  If I read the IRS General Instructions for Certain Information Returns, it indicates that as a nominee recipient - You
must file a Form 1099 with the IRS (the same type of Form
1099 you received) for each of the other owners showing
the amounts allocable to each.   I received a 1099-S from the title company.  Does this mean I need to file a 1099-S for each family member who split the proceeds, or should this be a 1099-MISC or something else?

2.  Is there a Turbotax product that I can use to file the 1099 (whichever kind it is) electronically now that the date to file by paper has passed?

3.  How do I account for these 1099's for $ going from me to the recipients and end up with net zero result on my tax calculations?  Note that the house was held long enough to be a long term capital gain.  I tried to go into Less Common Income, Miscellaneous Income, Other Reportable Income, and add negative dollar amount line items there, but I ended up with a huge tax refund by the time I did all that.  I think what is happening is that the negative dollar amounts in Other Reportable Income are applied as ordinary income subject to higher tax percentages than the proceeds from the 1099-S which are only long term capital gains.  Is there an appropriate way in Turbotax to record the 1099's going from me to the people who received the proceeds?

[ColeenD3]

Just include your portion of the proceeds. The whole reason to issue the 1099-S is to show where the money went.

TurboTax does not have the ability to file the forms. 

You would enter the sale in the Investment section. Do not select 1099-B. Choose "other" for sale of second home.

Please see this great answer from @DianeW777 addressing the question of how to nominee the amount.

Split the income and file the appropriate sale figures on each of the sister's returns.  Next you can 'nominee' the correct portion to the other sister. There is plenty of time so there is no need for concern. The IRS will not connect all the documents quickly and it will not cause any delays in processing the returns.

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.

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: 

• Form 1096-Transmittal 
• Form 1099S 2021