1099-s gross proceeds higher for inherited property split among siblings

[CocoMc]

I along with my 2 siblings received a 1099-s for inherited property we sold.  The amount in the gross proceeds is higher than the amount we received.  The title company said they put 33.33% of sale price on all their 1099-s forms.  We all received the 1099s form with the same amount since we did not receive separate checks.  Only one check was cut and was split after the fact.  My question is how do i report this when the amount on the 1099s is different than the total we received.  Even when i consider closing costs and other fees, the amount does not come close. 

[Critter-3]

Ok ... let me explain this ... you each got 1/3 of the SALES price on the 1099-S  which is never the same thing as what you walked away with.  Now you must report the sale using the amount on the 1099-S  and your cost basis in the property to get to the taxable gain or loss to be reported on the Sch D.  The cost basis is the fair market value on the date of death + improvements + cost of sale but not any mortgage payoff. 

[CocoMc]

So, if we just split the gross proceeds into thirds and report that, we should be good?  Even though we didn't actually receive that much?

[Critter-3]

Your Sch D MUST report the amount on the 1099-S  however you also get to enter the cost basis ... one of you need to get professional help then tell the others how this should be done. 

[rtucker2002]

I have a question if the proceeds are not even (meaning say 90/5/5) can you still allocate the basis evenly across the recipients if they all agree?

[ThomasM125]

No, the cost basis for each owner would be determined by what they paid for their share of the property, or in the case of an inheritance or gift whatever their basis would be based on how it is calculated for tax purposes. You can't just assign an arbitrary basis because everyone agrees on it.

@rtucker2002