Where do I add a 1099-S (proceeds from real estate transactions)?

[DoninGA]

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@deb1974 wrote:

WHEN I PUT 1099-S IN THE SEARCH BOX I DON'T GET THE OPTION TO JUMP TO .

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There is no link in the Search function for a Form 1099-S.  The form is used for many different types of sales.  What did you sell?

[msargent]

Solution to enter data for 1099-S for non-primary residence, does NOT work with TT 2022 Premier desktop version.
For first option, when I answer the prompt about main home and say No, TT says it will do it later in the investments section.
If I search for "1099s, sale of property other than main home" nothing is found.

[sriramganesan]

TT is awful when it comes to calculating after sale of rental property.  Form 4967 is simple to enter directly rather the software messing it up., It's convoluted when it comes to rental property sale. Why can't TT think straight and ask straightforward questions and keep transparency on how it calculates net gain or less (after factoring in accumulated loss and depreciation)?  I'm having a nightmare after selling two of my rental properties and having to spent 3 hours working with TT agents and experts who couldn't figure out what's going on with the system. Useless and waste of time!!  

[pk]

@sriramganesan ,  having read through last few pages of comments / posts in this thread , I can across one of your own posts  and I see that  while I understand your frustration  ( in having follow the software's "convoluted" path  rather than just jump into the form 4797 and and schedule-D, 8939 etc. etc. ), you have not provided the details of the situation  / scenario  so one of us can help you solve the current problem at hand.  I quite agree  that from a single user perspective , trying to solve his/her one problem, it seems quite overwhelming, complicated and may even be un-necessarily convoluted ---- but from the software designer/ coder perspective, he/she is trying solve a class of problems , with many nooks and crannies,   in the most efficient way .   I am not trying to justify  the product  but just pointing out that the problems may be more complicated than  appears to the individual  user.  Could they have done better ( the designer that is ) ,--- probably.

In any case could you PLEASE provide more context to your  issue and perhaps one of  us can help you  and perhaps even suggest changes for future -- so you don't suffer the same frustration year after year.  Please would you help  ?

I will indeed circle back once I hear from you

pk

[msargent]

Very simply - How do I input data from a 1099-S I received for the sale of some vacant land.
This property was basically just dirt. No improvements/structures on it.
So how do I input the information from this form?
And the followup question of how will I input the cost of the property I sold?
I am using the desktop version of TT Premier.
Is that sufficient information?

[sriramganesan]

Sounds like you are trying to justify the product and your staff! I'm not surprised!  I don't want to get into that part. I just want you guys to look at the analytics how many expert calls and support calls were made on rental property sale and 1099-S issue and how frustrated customers were/are with it, you'll find out how much Intuit wasted and solving the root cause of the problem. The design of rental property management including the sale is not clean, simple and transparent. Schedule-E, 8562 and 4797 are simpler to even do it manually. At least in the desktop version, one can go to the forms and make changes directly. The online version makes that even difficult to view and edit data directly into forms. I'm a product designer and I know exactly what's going on. Asking 100 questions and collecting data is just one part and how you convince that you are doing the right job  entering the right data in to the forms and keeping it simple and explainable to the user is what your software lacks

[sriramganesan]

Same kind of #$%^ going on with my 1099S. I've been struggling for weeks now. 

[pk]

@sriramganesan , I ask you again  to describe the problem  -- i.e. the scenario  that you are trying have  TurboTax  solve ---  just for your information ( and based on your  last response to my request )

1. All of us here are volunteers  and not TurboTax employees ( expert or otherwise )

2. We help users  and have no direct or indirect interest in supporting or bad mouthing TurbroTax -- we just help people do their taxes using the product.  We have no axes to  grind either way

3. All of us are users of the product ( have been so for many many years ) and many are retired  tax professionals ( myself included ).

4. I have personally held many rental properties, in different states  and have sold / exchanged ( 1031 ) quite a few. And have found Intuit products  ( TurboTax / Pro-series and Lacerte  quite adequate  for MY purposes  and situations , not necessarily  for all situations ). At the same I have no experience / knowledge of other tax software like  TaxAct .

Please would you tell me your situation so I can simulate on my copy of the  windows software . ?

Could you also tell me is you are US person ( citizen/ Green Card  / Resident for tax purposes ).  If resident , then country of citizenship ( as  Tax treaty  may be invoked )  and which state is the property ( ies ) in  and where do you reside ( state tax purposes ).

regards,

pk

[pk]

@msargent ,  assuming that you still need help on this , that the land sold is in the USA ( not foreign), that you are US person, the following may help in your particular case:

(a) you need the details form both 1099-S and HUD-1 ( or similar  included in your closing package)

(b) While in TurboTax ( with your return open ),  select the personal income tab, then select  "I'll choose what I work on "

(c) from the drop down list of  possible incomes , go down to  "Investment incomes". In this  sub-group you will find "stocks,bonds  ...", select the  this ( right hand-side blue box).  This will walk you through a series of screens  looking for the following ( sometimes it may help to click the heading  of the entry boxes and see the explanations.   Note that this set of questions  is  trying to cover all sorts of investment assets that have been sold and therefore  you pretty much have to behave as if you sold a lot of stocks/bonds and essential.  What it is trying to get are the following :  What the asset is ;   When  did you acquire the asset  ; What was the cost / basis of the asset when you acquired the asset; What is the "Proceeds" from the sale  ( here you have to use the 1099-S, the HUD-1 etc.  for the final net figure excluding any loan settlement ).  This will allow TurboTax to compute the  gain/ loss to be computed  ( form 8949 and schedule-D etc. )

(d) in my case I have TurboTax Home and Business and it is much easier to achieve the same thing  by using the business income tab -- it handles undeveloped land sales , rental property sales  etc, even with suspended losses.  It is the cleanest way  for such case.

I hope this helps  -- if you have specific  questions ( that may not be of general interest, you can always  PM me  with details of your situation and questions  -- no Personally Identifiable Info though.

pk

[msargent]

@pk  - That process seems to be more than a little off for what I am dealing with.
The steps lead to the creation of a 1099-B. I have a 1099-S. Most of the questions seem totally irrelevant to the sale of vacant land that is sold at a loss.
When I have a 1099-S in-hand and TurboTax wants to create a 1099-B how is that correct?

[pk]

@msargent , I quite agree that it is contorted way  -- but in my version ( latest update, Windows, Home & Business , it did ask for either 1099-B  / brokers report or 1099-S and I entered the details needed from 1099-S.

The best solution is to use TurboTax Home & Business. That allows you to enter the details under business  income  ( and covers all situations ( even though I agree it is a bit of overkill  for your particular case.  Should you decide to upgrade to Home & Business -- you can call TurboTax customer service and they should be able to provide you with a download of the program.

On the other hand if you are courageous enough, you could go into forms mode and enter the details  ( send me your details of the sale  ( when acquired, what is your cost basis  -- acquisition cost plus any other associated expenses at the time, any HOA or property taxes during the intervening years, when did you sell the asset, sales expenses -- commission, title fees, transfer tax etc. , sales price  ) -- using PM and I will walk you through the entries you need to make on the forms. Thereafter you should be able to do the needful.  

That is the best I can do.   Or you can consider professional help ( but it is also the costliest and may not increase your knowledge band.

pk

I don't know what else to tell you.

[meixiaoxiao]

In Turbotax 2022 premier, when I follow the easy steps. there isn't any placeI to enter my 1099S information for selling my rental property as well.

But after poking around in TurboTax, I found out that you can actually add this rental property sale under the Business Items.

- In Wages and Income tab, go to Business Items

- Sales of Business Property

- Check the first item, Sales of business or rental property that you haven't already reported. 

- Then enter the rental property sale summary 

I hope this is correct.

Note added later:  But I just check the forms, looks like it put this sale as a installment sale, which was not.  I'm so confused now.

[meixiaoxiao]

In Turbotax 2022 premier, when I first follow the easy steps,  I couldn't find any placeI to enter my 1099S information for selling my rental property as well.

But after poking around in TurboTax for a while, I found out that you can actually add this rental property sale under the Business Items.

- In Wages and Income tab, go to Business Items

- Sales of Business Property

- Check the first item, Sales of business or rental property that you haven't already reported. 

- Then enter the rental property sale summary 

But this looks like it force to treat this sale as a installment sale, I'm not sure if it's correct now!  So confused!

[KrisD15]

The best way to handle sale of rental property is to use the Rental Section. 

It is a little tricky.

First enter any 2022 expenses and income for the rental. 

If you have not used TurboTax for the rental in the past, you will need to enter that information

Select that the property was sold. 

The next screen will ask for rental days and personal days. If you never used it as your personal residence in 2022 enter zero for personal 

Finish the interview concerning 2022 income and expenses. 

GO BACK to that section and say Yes, you want to review

Answer the screen asking about Real Estate Professional, chances are you are not one. 

Continue

CLICK EDIT next to the property on the following screen. 

NOW scroll down to Sale of Property/ Depreciation 

Select YES I want to go to my asset summary

If the rental was not previously entered into TurboTax, you will list the building and land 

Here you will report the purchase price, the sale proceeds and Deprecation you took (or should have taken)

Selling rental real estate usually results in two types of income

DEPRECIATION RECAPTURE  which is Ordinary Income and Capital Gains. 

How this is computed is you figure the "adjusted basis" which is your basis (cost) minus depreciation. Doesn't matter if you ever took depreciation, the IRS thinks you should have either way. 

The sale proceeds minus this adjusted basis is your Capital Gain

The amount of depreciation you now need to "pay back" is ordinary income. 

Say you bought a house for 210,000

Land was 10,000 (land does not depreciate)

You took, (or could have taken) 80,000 depreciation. 

You sell for 320,000.

Land is now worth 20,000 so there is a 10,000 Capital gain for the land

That leaves 300,000 toward the building. 

Adjusted basis for building only is -

200,000 - 80,000 = 120,000

300,000 - 120,000 = 180,000 gain, 80,000 is Depreciation recapture and 100,000 is again Capital Gain 

TOTAL 

80,000 Ordinary Income 110,000 Capital Gain 

IRS LINK 

[bckey]

No matter what with TT it always starts as 1099-s when you select it and fill it out but when you finish inputting and save it shows 1099-b. EVERYTIME.