1099s Bug on Form 4797 Line 1 for Rental Property Sale

[Jason91221]

So I just noticed the same thing happened to me. I sold a rental property in 2022, received a 1099s, reported it on form 4797 but turbo tax didn't put the 1099-S amount on line 1a. On the home sales worksheet turbotax does have the box checked that I did receive a 1099-S. So there is definitely a glitch here. I've already submitted my tax return and received my refund. How will the IRS handle this? Will someone actually pull the return, look at it and see that the amounts on the 1099-S were reported and thats where it will end? Or will I receive a letter?

[JulieS]

As long as you reported the sale, you are not going to get a letter from the IRS about that box being blank. 

The IRS matching program checks for the 1099-B and 1099-S proceeds on Form 4797, Form 8949 and Schedule D because they may appear in any of those sections, depending on the situation. 

[Jason91221]

Thank you for the definitive answer on this about the matching program! It would seem this has to be the case or else this forum would be full of 100's of people complaining they received a non-reporting letter from the IRS after they sold a rental home. 

[QueueUnderflow]

I think you're right but I have to wonder, what is even the point of Line 1a on Form 4797 then? Is it more for the taxpayer's benefit than the IRS?

[HopeS]

The purpose of line 1a, is outlined in the IRS description below:

Line 1a.

Enter on line 1a the total gross proceeds from:

Sales or exchanges of real estate reported to you for 2022 on Form(s) 1099-S (or substitute statement(s)) that you are including on lines 2, 10, or 20; and

Sales of securities or commodities reported to you for 2022 on Form(s) 1099-B (or substitute statement(s)) that you are including on line 10 because you are a trader with a mark-to-market election under section 475(f) in effect for the tax year. See Traders Who Made a Mark-to-Market Election, earlier, and the instructions for line 10, later.

See additional detailed information in the IRS instruction:

Form 4797

@QueueUnderflow