Sale of second home 1099-S cost basis info

[user17715173406]

I received a 1099-S form for the (long term) sale of a second home.  The form does not include cost basis info. The gross proceeds (box 2), does not account for the basis, improvements or sales expenses. 

The TurboTax instructions say "If you received a 1099 form for this other investment sale, you should enter that information here. If you did not receive a 1099 form, enter the info as required". 

The page prompts me to provide the "Total amount paid".  

On other discussion boards it has been stated that one should enter the sum of the original basis, improvements and appropriate sales costs in the "Total amount paid" box.  However, I am questioning if this is accurate.

If I enter "0" for "Total amount paid", on the next page I am asked to add "Sales expenses not on 1099‑S or statement".  If I enter a dollar amount here, and switch to Form 8949, Form 8949 has adjustment code E (the code for long-term transactions where the basis was not reported to the IRS).  

So, I believe I should enter "0" in the "Total amount paid" box, and then enter the sum of my original basis, improvements and sales expenses on the next page for "sales expenses not on 1099-S".   This approach would appear to make the entry be consistent with Code E (basis not reported).

Does this seem appropriate?

Thank you.

[Mike9241]

I suggest using the home sale worksheet. 1099-S never includes a cost basis. That requires manual entry in whatever form you use (The HSW makes it easy). Closing costs are on the closing statement. Not all costs are deductible. Some, like taxes and interes,t are entered on Schedule A (subject to limitations specific to your situation). HOA fees and utility prorations are generally not deductible unless it's a rental. There may be other costs that are deductible/noit deductible.  

[Vanessa A]

No.  Since you are entering a 1099-S, there is no spot on that form for anyone to report the basis so it does not need to be there.  

The total amount paid is where the cost basis is to be entered.  If you click on the little question mark or learn more box next to the Total amount paid, it will give you a full description of what should be entered there.

 

[DoninGA]

The next page is asks for sales expenses not already entered on the prior screen under Proceeds.  How is that going to affect the Adjusted Basis of the property that was sold?

You enter the Purchase price plus the cost of any improvements to the property prior to the sale in Total amount paid

[user17715173406]

Thank you for the response.

I entered in my original basis and improvements in the Total amount paid box, and on the next page added in the appropriate sales expenses.   

Not having seen a 1099-S before, the thing that is had me heading in the wrong direction was one of the notes when you click on the "Total amount paid" "?" states: "Note: The cost basis on your 1099 may be $0. Or, you may have received a $0 value from your import. Keep it at $0 for now. We’ll help you adjust the value later." 

Guess this just applies to other 1099s (e.g., 1099Bs), not a 1099-S.