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posted Jun 1, 2019 12:52:05 PM

Sale of IRA held property

I have investment real estate that is held within an IRA... last year (2018) I sold a house, and received a Form 1099-S from the Title company. I don't believe that the sale is taxable (i.e it is deferred), but how do I enter the 1099-S into my taxes, or do I enter it into my taxes (since the 1099-S has been issued) to keep everything honest and on the up & up?


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Level 15
Jun 1, 2019 12:52:06 PM

Just keep the 1099S with the tax records as it does not get reported on the tax return.

Anything that takes place within the retirement account does not impact the return. If IRS does ask, you will simply let them know that this was inside the IRA and does not go on the individual return.

This happens every now and then, so it is not that unusual.

4 Replies
Level 15
Jun 1, 2019 12:52:06 PM

Just keep the 1099S with the tax records as it does not get reported on the tax return.

Anything that takes place within the retirement account does not impact the return. If IRS does ask, you will simply let them know that this was inside the IRA and does not go on the individual return.

This happens every now and then, so it is not that unusual.

Alumni
Jun 1, 2019 12:52:07 PM

@TurboTaxMichaelL1  - Probably not an issue here where @latoner1 apparently had the IRA directly owning a single piece of real estate, but do be aware that there are implications when an IRA holds ownership of real estate, typically in an REIT.

Level 15
Jun 1, 2019 12:52:09 PM
Alumni
Jun 1, 2019 12:52:10 PM

That was my point - as that article supports my comment that "Anything that takes place within the retirement account does not impact the return." (your line in the answer, although your answer to the OP's question is accurate) is in some cases not correct.