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Level 2
posted Feb 12, 2024 2:05:54 PM

1099-S How to Fillout Form

My siblings and I inherited my mom's house after she died late 2022.  Value at the time was 179,000.  We sold it within 6 months in May 2023.  Sale was only 172,000.  I'm trying to account for sale in Turbotax Premier addition.  I click on 1099-S tab under investments but after entering all of the information as a "second home" it says that your info should match your 1099-B exactly.  Why is it referring to 1099-B form?  Also, We did not receive a 1099-S from title company. There is no gain on the sale, just want to know how to account for this transaction? 

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1 Best answer
Employee Tax Expert
Feb 12, 2024 2:57:49 PM

Forget about the 1099-S section.  You and your siblings each need to report a transaction using 1/3 of the sales proceeds.  You will report the sale in the same section in which you report stock and other investment sales.  To Enter in TurboTax: 

 

  • Type "Investment sales" in the search window and click Enter
  • Click on "Jump to Investment sales"
  • On the page with "Did you have investment sales in 2023?"  Answer Yes
  • Answer No to "Did you cave crypto income or losses in 2023?" 
  • Skip the import sections and click on Enter another way
  • On the screen with OK, let's start with one investment type, click on "Other"
  • Answer No to "Did you get a 1099-B..."
  • Enter the name of the person or entity that brokered the sale (you can leave this blank)
  • On the "Now enter one sale for [description]" Indicate "Personal items, I inherited it" and give a description like "Inherited House".
  • The interview will walk you through entering the details of the sale

I would enter the same value for proceeds and fair market value.  

 

Why call it  "Personal items"?  It was not an investment, and it wasn't your second home; therefore, it is a personal item.   It won't have any effect on your tax return if you do call it a personal home.  

 

 

1 Replies
Employee Tax Expert
Feb 12, 2024 2:57:49 PM

Forget about the 1099-S section.  You and your siblings each need to report a transaction using 1/3 of the sales proceeds.  You will report the sale in the same section in which you report stock and other investment sales.  To Enter in TurboTax: 

 

  • Type "Investment sales" in the search window and click Enter
  • Click on "Jump to Investment sales"
  • On the page with "Did you have investment sales in 2023?"  Answer Yes
  • Answer No to "Did you cave crypto income or losses in 2023?" 
  • Skip the import sections and click on Enter another way
  • On the screen with OK, let's start with one investment type, click on "Other"
  • Answer No to "Did you get a 1099-B..."
  • Enter the name of the person or entity that brokered the sale (you can leave this blank)
  • On the "Now enter one sale for [description]" Indicate "Personal items, I inherited it" and give a description like "Inherited House".
  • The interview will walk you through entering the details of the sale

I would enter the same value for proceeds and fair market value.  

 

Why call it  "Personal items"?  It was not an investment, and it wasn't your second home; therefore, it is a personal item.   It won't have any effect on your tax return if you do call it a personal home.