1099 Received for Home Sale - Necessary to Enter into TurboTax

[troy1]

If a taxpayer received a 1099 for the sale of their personal residence, and that sale was reported on the home sale worksheet, is it necessary to enter the 1099 directly in another section? Or is entering the amount from the 1099 on the home sale worksheet alone sufficient?

I have seen other software that has a specific section to enter 1099 directly as a form entry.

[rjs]

I assume that the 1099 you received is a 1099-S. There is no place to enter a Form 1099-S itself in TurboTax. Entering the sale of the home is all you have to do. Make sure that the sale is shown correctly on Form 8949. Other software may handle a home sale differently.

I would suggest entering the home sale in the Step-by-Step interview rather than in forms mode. The Home Sale Worksheet can be complicated and error-prone.

[PattiF]

Here are the steps to enter the information found on the 1099-S.

• Click on the Wages & Income tab
• Next click on I'll choose what I work on
• Scroll down the screen until you come to the section Investment Income
• Chose Stocks, Mutual Funds, Bonds, Other and select Start or Update
• The first screen will ask if you sold any investments during the year, answer 
• Did you get a 1099-B or a brokerage statement for these sales? Answer No
• Tell us about this sale, Click I'll enter one sale at a time
• The drop-down boxes can be filled out with the details of your personal home

1. Description -  address
2. Date sold - 1099-S
3. Date acquired - from your records
4. Sale proceeds - 1099-S
5. Cost basis - purchase price plus other settlement costs

You can include in your basis the settlement fees and closing costs you paid for buying your home. A fee is for buying the home if you would have had to pay it even if you paid cash for the home.

The following are some of the settlement fees and closing costs that you can include in the original basis of your home.

Abstract fees (abstract of title fees).

Charges for installing utility services.

Legal fees (including fees for the title search and preparation of the sales contract and deed).

Recording fees.

Surveys.

Transfer or stamp taxes.

Owner's title insurance.

Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

Here is a TurboTax Help article about selling your home.

Here is a more direct way to report the Sale of Your Personal Home and make sure that the 1099-S is included in your tax return.

To report the sale:

1. Log in to your account.
2. Go to Federal Taxes.
3. Go to Wages and Income.
4. Scroll down to Less Common Income and click show more.
5. Select Sale of Home (gain or loss)  and Click start.

Make sure that you indicate that you received a 1099-S for the sale so that the IRS will know that that was reported.

On the screen

Include Sale of Home in Return

If you received a Form 1099-S be sure to mark the box below to include the sale of this home on your tax return

Check the box below this for Include my sale of home on my return.

[Edited 03/28/23|11:43 AM PST]

@troy1 

[troy1]

So contrary to the other response, there is a section to enter the 1099-S?

[PattiF]

There is no section to enter a 1099-S precisely. There is a section to enter some of the information from the 1099-S. The investment section is used to report the sale.

From the IRS:

Generally, you are required to report a transaction that consists in whole or in part of the sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in any of the following.

• Improved or unimproved land, including air space.
• Inherently permanent structures, including any residential, commercial, or industrial building.
• A condominium unit and its appurtenant fixtures and common elements, including land.
• Stock in a cooperative housing corporation (as defined in section 216).
• Any non-contingent interest in standing timber.

The form reports various sales and no tax software has an exact entry spot for form 1099-S like you would enter a 1099-INT or a 1099-R. 

@troy1