1099S (real estate sale) and K-1 for same rental property

[enbaquero]

I received a 1099S for the sale of a rental property owned by a partnership, for which I also received a K-1.  The K-1 distributed the total income and proceeds of the sale.  What do I do with the 1099S?  How do I let IRS know the K-1 includes this transaction and that the 1099s would duplicate it?

thanks.

Edgar

[RSUMan]

Is the Form 1099 S just your distributive share of the sale?

Does the Form 1099 S have your Social Security Number on it?

I would just report the K-1 data.  If you get a letter from IRS about the proceeds set forth on the Form 1099 S, you can point them to the K-1 data showing that you reported your distributive share of the real estate sale.

The title company most likely issued the Form 1099 S because they were concerned about their own liability.

I think the best practice is the Form 1099 S should have been issued to the partnership and then each partner would recognize the sale through the K-1.

[enbaquero]

Yes, to both questions.  Is there a way to type a note to the IRS, which would be added to the electronic submission, to provide that explanation?

[rschule1]

HI There:

If the 1099-S lists the partnership EIN number and if the amount of gain on sale is reported per the K 1 then you don't have to do anything. Also, You mentioned distributed which could be different than a K 1 reporting gain of sale.

However if the 1099S lists your individual SSN# then it would be good form to report the sale on your individual tax return with 1099S representing sales proceeds and basis equaling cost of the investment in addition to other applicable gross up's such as gains reported on K1.

[RSUMan]

You could add the 1099 S as sale of investment property and reflect the basis as equal to the proceeds; thus zero gain.

This assumes your gain on sale is being appropriately reflected on the K-1.

When describing the asset sold you could enter "Real Property Sold and Reported on K-1"