I received a 1099-S for the Sale of My Main Home. Why?

[stacimagic]

I sold my mobile home for 43,000.00

The closing company issued a 1099-S to me and my mother (she had co-signed on my loan).  So we each got a 1099 for 21,500.00.

First, I don't understand why I got one in the first place, since its my main home and its under 250K.

Will the 21.5K be added to my INCOME number?  Im freaking out, cause I am a single Mom and my daughter gets State Healthcare.

And lastly, how will this effect my Mothers taxes, since she doesn't report interest or taxes on the trailer.  And that was the gross amount....we still have to pay off the loan anyway.

Any help is greatly appreciated.

[LeeM · Accepted solution]

I would not worry, it only needs to be reported on one of your income tax returns and it will most likely not be taxable.

It will not be added to your income as long as you did not receive a profit of over $250,000 and it was your primary residence for two of the last five years. 

For more information on how to enter that Form 1099-S, you can review the TurboTax FAQ below:

https://ttlc.intuit.com/replies/3302480

[315bob]

Received 1099-S for sale of property under White St Realty Trust closing 7/31/17. Where do I enter info.

[peetee33]

So I can enter it into my taxes when I do them for 2020 and should be ok? I contacted an accountant but I'm not sure I need to pay for them to help me as long as I can figure it out when it's time to do my taxes.

[Hal_Al]

@peetee33  asked "So I can enter it into my taxes when I do them for 2020 and should be ok?"

Answer: Yes.  Even though you are not required to report a home sale if you meet the exclusion, the fact that you got a 1099-S means the IRS will be looking for it on your return.

The TurboTax interview easily and smoothly puts the sale on form 8949 & Schedule D and excludes the gain. 

In TurboTax (TT), enter at:

- Federal Taxes tab

 - Wages & Income

Scroll down to:

-Less Common Income

     - Sale of Home

[bobtax8]

how do i add it to my return

[Cynthiad66]

Here is how to enter a form 1099S 

You may get a 1099-S if you sold your home, a rental property, stock in a co-op or any other real estate, including land, permanent structures, or standing timber on your land.

Sale of your main home

If the 1099-S was for the sale of your main home, it’s reported under Less Common Income in the Wages & Income section. Here's how to enter the form:

1. Open or continue your return.
2. Type sale of home in the Search box.
3. Select the Jump to link in the search results.
4. Follow the screens to enter the info from your 1099-S.

Profits of up to $250,000 ($500,000 on a joint return) on the sale of your home may not be taxable if it was your primary residence for two of the last five years. We’ll ask you some questions about the sale of your home to see if you qualify.

Other real estate sales

If your 1099-S wasn’t for the sale of your main home, select the option below for step-by-step instructions:

• Sale of a second home, an inherited home, or land
• Sale of a rental property
• Sale of standing timber