Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

[ToddL99]

Not all title companies report the sale of property on Form 1099-S. If you receive one, you have to report it on your return. If you don't receive one, do not be concerned.

From @PaulaM :

It is not unusual to not receive a 1099-S form. You can ask the closing attorney if one is being sent, but do not request one if its not needed. If you receive the form, you must enter the sale on your tax return. If you don't receive the form and you qualify for gain exclusion (see below), then the sale does not need to be entered on your return.

Gain exclusion:

You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.

If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.

Do not report the sale of your main home on your tax return unless:

• You have a gain and do not qualify to exclude all of it,
• You have a gain and choose not to exclude it, or
• You have a loss and received a Form 1099-S.

[tkauffman]

Thank you for the quick response!  Yes, I am just concerned because the house was never a primary residence.  And it was titled under my sister's name and myself, not a married couple....  The house did sell  for $315,000...  I just do not want the IRS knocking on my back door!  LOL!

[cgillespie14]

Hello! 

This might not be the place to ask this but I am having a lot of trouble getting an answer to this. 

My mother passed away in August 2019. We sold her home in March of 2021. 

Is the revenue from the sale taxable? If so, how to I file that tax? I am the executor and the beneficiary of the estate. 

[DaveF1006]

Yes, if there is revenue from the house, It must be reported as a sale and you may need to pay capital gains on the sale. To report the sale, you will need to know the Fair Market Value of the house at death and then the proceeds received from the sale. Most of the time, these two amounts are identical resulting in very little capital gains to you, the beneficiary.

[cgillespie14]

That is VERY helpful, thank you. Is this done through my own taxes? I just report it as additional income? I didn't receive any tax forms form anyone...

[MayaD]

You mentioned that you sold the inherited home in March 2021, so you will report the sale on next year's return.

You will enter the info in the investment section of TurboTax. Please check the link below for information on how to report the sale of inherited home.

Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?

[TMOBV]

Hello,

We have a slightly different situation and would appreciate any advice you could offer.

- My sister and I bought a house together in 2013, sold it in 2020 (with less than $250k gain).

- We both lived there; she longer than I and I did not live there a full 2 years of the last 5.

- During closing, we signed "1099-S Reporting" Forms (her form ticked the box for principal residence; my form has 'other real estate'. The attorney also had us sign a form "NJ Seller's Residency Certification/Exemption" on which they ticked "the property sold is used exclusively as a principal residence as defined in 26 US Code section 121."

- Neither of us received 1099-Ss from the title company.

Question:

- Do we both need to file this sale on our 2020 taxes?

- OK to call title company just to see if they filed a 1099-S?

Many thanks!

[ErnieS0]

@TMOBV Yes to both your questions. Call the title company to see whether they filed a Form 1099-S with the IRS and get a copy (or at least the numbers) so the gross proceeds on the 1099-S match what is reported to the IRS.

TurboTax receives numerous calls from taxpayers who receive IRS notices based on 1099s that they received a copy of.

That brings me to your other question. If your gain is below $250,000 you do not have to report the sale of a principal residence, but doing so heads off a potential IRS notice. If you fail to report the sale and get an IRS notice, you'll have to file an amended tax return to report $0 gain. It's better to do it now to avoid any surprises later since the notice will say you owe tens of thousands of dollars (since the IRS assumes you paid nothing for your house).

If you choose to report the sale, tick the box that said you received a 1099-S (even if you did not). That prompts TurboTax to report the sale on your tax return.

[TMOBV]

Thanks!
We called the title company and they will forward us a copy of the 1099-S.
Yes, to avoid any confusion, I figured that if I am reporting my half of the sale, then my sister probably should as well even if she is exempt from CGT on any profit.

[ErnieS0]

@TMOBV Wonderful! Yes. You should both report you halves of the sale. It may feel unnecessary because nothing is taxable, but the IRS computers pick up 1099-Ss and spit out notices.

With the IRS still short staffed because of COVID-19 it's very difficult to get anyone over there to answer the phone and there's months of taxpayer mail sitting in trailers, It's worth being proactive.

[TMOBV]

Thank you! 

[TMOBV]

@ErnieS0 

Follow-up question: The title company from the home sale disbursed a portion of my funds from the sale (>$15,000) directly to my brother.

1 - Does that still count as a reportable gift event that I need to file on a Form 709?

2 - And it is non-taxable as it's covered under the lifetime gift tax exemption of $11.8 million, correct?

[ErnieS0]

Was the $15,000 intended to be a gift? If so, there is no reporting, The annual gift tax exclusion for 2018, 2019, 2020 and 2021 is $15,000. You do not have to file a gift tax return unless the amount is over $15,000.

[TMOBV]

It was a gift and more than $15,000.

So, she needs to file a Form 709 then?

[Cynthiad66]

When a gift's value exceeds $15,000, the giver – not the recipient – is responsible for reporting it on their taxes. This is done on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. Read more here.

For gifts valued at $15,000 or less, neither giver nor receiver need to report it.