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

[Jesusmonge1313]

I nevrr sold  any of this .i never even knew i owned this .i know i had an inheritance but last i recalled someone stole it  and i didnt know tge proper steps as to resolving that i need to have this looked into cause its important

[Hal_Al]

@Jesusmonge1313 Nobody here, in this forum, or in TurboTax, can help you "look into this". it sounds like you need to talk to whoever is handling the estate for your inheritance.

If you think the 1099-S was issued in error, we can tell you how to handle that, for your tax return. 

If you received an erroneous 1099, you have several choices:

1. Ideally, you get a corrected 1099-S from the payer
2. Don't report it on your return. Attach a copy of the 1099-S and a statement explaining the circumstances. You can't e-file. From the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your income correctly (don't add it to your return).
3. Report the income as misc line 8z, Schedule 1 income then take a deduction for the same amount   In TurboTax (TT), enter at:
   - Federal Taxes tab
    - Wages & Income
   Scroll down to:
   -Less Common Income
         -Misc Income, 1099-A, 1099-C
          - On the next screen, choose – Other reportable income -  Answer yes to Any other Taxable Income -On the next screen, Enter the amount from the 1099-S.  Briefly explain at description. Call it something like Erroneous 1099-S income

           Then enter a line 8z deduction, for the same amount.  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income -  Answer yes to Any other Taxable Income -On the next screen, Enter the number with a minus sign (-) in front.  Briefly explain at description. Call it something like "Erroneous 1099-S adjustment"

4. Do nothing and hope you can explain it away when & if the IRS contacts you

[lhinkle]

This does not work for my CD version of TurboTax Premier

[DoninGA]

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@lhinkle wrote:

This does not work for my CD version of TurboTax Premier

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This is a multi-year thread with various issues being reported.  What exactly does not work?

[lhinkle]

Income section "1099-MISC and Other Common Income" does not address the 1099-S.  A search for it or "sale of a second home" does not provide information other than what pertains to the sale of a primary home.  The "Investment Income" section pertaining to 1099-B or broker statements" likewise does not address the sale of a second home.  I believe previous versions of TurboTax Premier did address 1099-S.

[DoninGA]

@lhinkle See the answers provided in the following thread, there will be a procedure if you are using the TurboTax online editions and a procedure to use if you are using the TurboTax desktop editions - https://ttlc.intuit.com/community/retirement/discussion/how-record-the-sale-of-a-second-home-have-10...

[PattiF]

There is no section in TurboTax to directly enter the information from the 1099-S. This is also the way tax software is coded for other programs including Ultra Tax. Form 1099-S is used to report the proceeds from the sale or exchange of real estate and certain royalty payments. This includes transactions that consist of sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in: Improved or unimproved land, including air space.

You will enter the information from the 1099-S and your information about the date of purchase and the cost basis of the home that you have from your records. 

Here is a TurboTax Help article with instructions for entering this into your tax return using the Desktop version of TurboTax.  Use the exact search term in the instructions.

@lhinkle

[tedkaltenberg]

Where to file the Proceeds from 1099S?

[Hal_Al]

Q. Where to file the Proceeds from 1099S?

A. Simple answer: Form 8949, then to Schedule D.

Where you enter it in TurboTax (TT) depends on why you got the 1099-S.  This thread is now 4 pages long and probably covers every possible scenario. 

[meggiha]

I use your TurboTax - Home and Business  Version and want to enter a 1099-S FORM  from a sale of Vacant Land, which I have owned for 17 years.

[LeonardS]

To report the 1099-S for the sale of your vacant land in TurboTax follow these steps:

1. Open or continue your return
2. In the search box, enter sold second home 
3. Click on Jump to sold second home in the results box
4. On the page Did you sell any of these investments in 2021?  Answer yes
5. On the page OK, let's start with one investment type check the Box for other

1. On the page Tell us more about this sale enter “sale of vacant land” in the Name box
2. Answer all the questions on the page Now, enter one sale for sale of vacant land Enter the GROSS 1099-S in the Proceeds box and your basis in the Total amount paid box
3. On the page Let us know if any of these situations apply to this sale check the box you paid expenses and enter your sale expenses
4. Continue to the page Your investment sales summary where you will see your Total gain if any on the sale of your vacant home.

Vacant land not used for investments purposes is personal use of a capital asset. A gain on the sale is reportable income, but a loss is NOT deductible

This link Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes? has information you may find useful.

[Hal_Al]

If the land was held as an investment, In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Investment Income

   -Stocks, mutual funds, Bonds, Other (Real estate is other)

Answer no, when asked if you got a 1099-B. then follow the interview. When asked if used for business or rental, check "other investment purpose"

[jdhade]

DianeW's solution is not applicable to the 2021 windows Deluxe version.

[JohnB5677]

@ Hal_Al s solution will work.

1. Federal Taxes tab (Personal in  Home & Business)
2. Wages & Income from top banner
3. Scroll to: Investment Income
4. Select Stocks, mutual funds, Bonds, Other (Real estate is other)
5. Answer no, when asked if you got a 1099-B
6. I'll enter one sale at a time
7. Post your sale information.
8. Continue the interview

This will properly allocate your capital gain/loss from your second home.

[vhop655194]

I tried never asked if this was for second home or real estate transaction