1099S form

[KostasE]

Form 1099-S
My mother lived at the house, it was under my brother's and mine name, althought we had a trust where ny brother and I had the 90% and my mother 10%. after my mother passed away in January of 2024, my brother and I then had 50% each.
Sale of the house 9/25/24, bought 405,000 - sold for 573,000, each of us got 286,500.00

How do we report this to IRS?
I see turbotax has a way to enter it under Investments but it is confusing, I et an error with the dates.

Do we need to report this now and pay taxes now (until Jan 2025) and also report it as part of our personal filling taxes later on?
How do we report this income?
Gain is 573-405 = 168, 168/2=84,000 needs to be filed to IRS?
Add any house expenses? Sprikler system. New roof. New wood floors. New furnice, water heater etc. Work on the sun room, blinds etc
Anything else?

[gforeman1]

Yes, you must report the sale of the home in the year that it was sold to the IRS on your tax return. In TurboTax:

1) Select Wage & Income Section

2) Select at the bottom the Less Common Income 

3) Select Sell of Home (Gain or Loss)

Continue to answer the questions. You will be able to enter the information you received on the 1099-S as well as the Purchase price, Sales Expenses, Improvements, etc.  Here is great link with information on what you can deduct when selling a home: I sold my home, what can I deduct? 

[KostasE]

ok thanks.

So since my brother and I each one of use received  a 1099-S form (with the split amount of the sale), we should also split the cost of the house when it was originally purchased (i.e. purchase price 405000, each one of us will need to repost 405/2  = 202.5)

Do we need to report this to IRS and pay the taxes before April 15 of 2025 or do we need to do an earlier filing?  Somebody mentioned to me that maybe you can file this earlier and pay the taxes and then also report it later on.  Thanks.

[Terri Lynn]

Hello,  KostasE!

Yes, you will split the basis of the property, as well.  However, the basis for inherited property is not the origina owner's cost basis. The basis becomes te stepped up cost basis of the property which is usually equal to the fair market value when the owner died or the assets were transferred. A "stepped-up" basis means the cost basis is raised to the asset's market value on the original owner's date of death for tax purposes.ed up basis of the property. 

In regards, to needing to file the sale of home earlier, you are required by the IRS to report the sale of the home, in the tax year in which it was sold. The sale goes on Schedule D and Form 8949 (Sales and Other Dispositions of Capital Assets). Schedule D reports any capital gain or loss on the sale.

In general, the IRS expects you to  pay the tax ahead of time on the sale, if you anticipate you will owe more than a $1,000 in taxes, after considering withholdings and other payments.  Estimated taxes are paid quarterly, and are due  when the income was earned by the fifteenty day following the end of the quarters defined by the IRS: 1st quarterly estimate due, April 15,  2nd quarterly estimate due, June 15,  3rd quarterly estimate due September 15, and 4th quarterly due January 15.  For example: if the sale occurred between September 1 and December 31, 2024, you will meed to make your estimated payment by January 15th, 2025.

• To make an estimated payment and explore your payment options, please see: Pay the IRS  
• And for more information on this topic see:How and When to Pay Estimated Tax Payments

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

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