1099-s

[Jem630]

How do I handle a 1099-s for a property that I did not originally purchase and was just put onto the deed to obtain a loan to assist in purchasing another house? These are a primary residence but I personally do not own the property that was sold or the new property that was purchased from the sale of the original house. They are both in my boyfriend’s name and not mine. My name was only added  to obtain a loan so the second property could be purchased before the original property was sold. We both received 1099-s that have the total asset value of the entire sale. I did not put any funds or were part of the original purchase of the first property. My name is not on the second property purchased after we sold the first since we are not married. He wants to claim all the assets so how do I go about doing this without having any tax penalty on me since I am not the owner. I cannot figure out how to do it on turbo tax. My name was only added the original deed only a few months to obtain the loan. Please advise 

[ThomasM125]

It would be a legal issue as to whether you had a legitimate ownership interest in the property or not. If it was gifted to you, your cost would be the cost basis of the person who gifted it to you. To be technically correct, you would enter your share of the sales proceeds and that as the cost and the difference would be capital gain income to you.

If you feel that is not correct, the best thing to do would be to get a corrected Form 1099-S with your name removed, but that may be hard to do. Two other options would be to not report the sale or report it and enter a negative adjustment to "Other Income" to cancel it out as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description for the adjustment and the amount as a negative number