1099-S, Sale after a divorce?

[kinsey0713]

My ex wife and I bought a house together in 2016. We got divorced in 2019. We agreed on her keeping the house and she was free to do with is as she pleased in exchange for child support, which meant she could sell the house for profit and all of the proceeds were hers.

She recently sold the house and made profit on it after paying it off. My name was still on the house so I had to be listed as a seller as well. I got a 1099-S with my "part" of the sale, even though I received no proceeds. I have not lived in the home since September of 2018. I now rent. How do I go about reporting this since a 1099-S was issued to me even though I did not receive the funds? Am I stuck with paying taxes on a gain that I did not.... gain??

[Hal_Al]

Enter code N [You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property] in column (f) of form 8949 and the amount in column (g). 

You should probably let her know that you are doing this, as she will make an opposite adjustment on her tax return/1099-S.  

[kinsey0713]

Not sure if I did it wrong or not but going through the Investment section for the 1099-S,  did not give any option to select an "N" code. It asks for proceeds, am I supposed to list it as $0? The 1099 reflects that I got 50% of the sale, but I did not. I feel like this would be an instant audit since the IRS did receive the information from the broker. The only way I can get the form to reflect accurately sticks me with a $79k gain through the "sale of main home" form.

[Hal_Al]

It appears to be a short coming in TT.  I could not get it give me that option either.

I have the download software, the adjustment can be made in the forms mode.  Forms mode is not available in the online programs. 

One alternative workaround (I've seen it  recommended, in this forum) is to just enter the 1099-S amount as your cost basis, resulting in 0 gain. 

[Hal_Al]

It'll probably be no help, but here's an older post on the subject. 

https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-enter-nominee-amounts-on-schedu...