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mfox81
New Member

I sold a property in 2024 that was jointly owned with another individual. Their accountant used form 8949. Turbo tax wants me to use 4797. How do I add it to 8949?

Residential property reported using a 1099-S. Joint owner is non spouse.
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1 Reply
JamesG1
Employee Tax Expert

I sold a property in 2024 that was jointly owned with another individual. Their accountant used form 8949. Turbo tax wants me to use 4797. How do I add it to 8949?

What is the nature of the residential property reported on an IRS form 1099-S?  The tax treatment is based upon the nature of the residential property.

 

Is the residential property:

 

  • Your main home, 
  • A second home, 
  • A vacation home, 
  • Land,
  • Residential rental property, or
  • Real property recorded as a business asset?

IRS form 1099-S Proceeds from Real Estate Transactions may report each of these.  But the tax treatment of each of these transactions differs. 

 

Sale of a second home, an inherited home or land are considered investment sales and are reported on IRS form 8949 Sales and Other Dispositions of Capital Assets.

 

IRS form 4797 Sales of Business Property reports to line 1 of Schedule D Capital Gains and Losses.

 

 

 

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