How do I enter 1099-S?

[charjean47]

I received a 1099-S from my Mother’s Trust as a result of her home selling.  I also received a K-1 do to loses regarding the property.  I am one of 4 beneficiaries.  I entered the K-1 information but am unable to find where I must enter the info from my 1099-S.  The accountant that did my mother’s probate trust taxes stated the benficiaries should not have to pay any monies on taxes.  The basis of the home when she died and the amount the home sold for are the same.  There have been improvements to her home since she died and closing costs were paid.  So where do I enter the 1099-S information?  Thank you for your time.

[KathrynG3]

Since this property was owned by your mother's trust, the sale of the home is already included on the beneficiaries' Schedules K-1.

Keep Form 1099-S for your records. Do not enter the home sale again, or else reporting the sale would be duplicated.

The reason why the basis of the home is the same between the date of death and the date the home sold is because of a tax rule your accountant handled for you. It is a very good for you and the other beneficiaries. It is called "step-up" in basis. It means that the property is valued at its appraised value, which would have included the improvements.

[charjean47]

You mentioned the sale of the home is already included on K-1.  The only thing on K-1 is on 11A and 11C.

11A is a combination of taxes and attorney fees.  11C is a combination of Commission, Other Closing Costs and Fix UP Expenses.  Is this what you mean?  Is something missing?  Should there be an entry with the amount the house sold for?  Only losses are on the K-1.  No income is shown.  The amount I received is on the 1099-S but not on the K-1.  Is the K-1 incorrect?  I just thought I have to enter somewhere the monies I received.  I definatly need help. Thank you

[charjean47]

The amount we received from the sale of my mother’s house is on the 1099-S form but not on the K-1 form.  Should the amount we received be on the K-1 form?  If we do not enter the amount of income received from the 1099-S form, how will The IRS know the amount if we do not claim it?  The income received is not anywhere else on the return.  It just seems to me that I should be entering the income received from the house somewhere.  

I noticed the Trust accountant entered on 1041, Schedule B, Line 10 of mother’s Trust Return the net amount of the home after deductions (commission, taxes, Fix Up expenses, closing costs) instead of the amount the home sold for.  The amount we received on the 1099-S matches the amount the house sold for before deductions.  He transmitted the taxes.  I am concerned that problems may result and don’t know what to do.  Thus, this is part of the reason I am asking questions about the K-1 form.  Should the accountant of my mother's Trust returns admend Federal and State returns because the net amount of the sale is on 1041, Schedule B, Line 10 instead of the sold amount before taxes?

Thanks

[ThomasM125]

If the form 1099-S is issued with your social security number on it, then  you should report it on your tax return as follows:

1. Go to the "Federal" section of TurboTax and click on  "Income and Expenses"

2. Look for "Investment Income" and click on "Stocks, Mutual Funds, Bonds, Other"

3. Answer "No" to the question about receiving a form 1099-B

4. When asked what type of investment sold? answer "Second Home"

5. Enter the property address of the house sold and the proceeds reported on the 1099-S

6. Indicate that you inherited the home

7. Enter the date and fair market value of the home when you inherited it

If there is any income from the sale of the house reported as taxable income on the estate return or on your K-1 form from the estate, you can add your portion of that amount to the fair market value of the house as reported in step 7 above.

In other words, if there is a gain on the sale of the house and the estate paid income tax on it or you reported it as income on your return from the k-1 entry, then you are just reporting the form 1099-S just to show the IRS that is has been accounted for on your tax return.

[charjean47]

Only thing on beneficiary’s K-1 is deductions.  Only thing on beneficaries 1099-S is1/4 of the amount the house sold for before expenses.   Please see how KathrynG replied above.  I thank you and Kathryn G.  I just don’t know which way to go.  At this time.  I am following your instructions.

[LinaJ2020]

To enter the Form 1099-S, here are the steps below:  ( You would prorate the cost basis of the house based on the percentage of your portion of the proceeds over the total amount.  In your situation, it's the 25%)

In TurboTax online, 

• Sign in to your account, select Pick up where you left off
• In the Search box, at the right upper corner, type in 1099-s, sale of property other than main home, then Enter   
• Select "Jump to 1099-s, sale of property other than main home"
• On-screen, "Did you sell any investments in 2019? "answer Yes
• Follow prompts

@charjean47

[charjean47]

After I enter search, I never see, “Jump to”.  Thank you.

[DavidS127]

Here's how to enter your 1099-S for the sale of the home you inherited from your mother:

1. Search for "1099b" and use the "Jump to 1099b" to enter the sale of your portion of your mother's home.
2. Click "Add more sales" and answer "No" to the question about if you will receive a 1099-B.
3. Enter the name of the entity that sent you the 1099-S for the broker's name and continue to the next screen.
4. For the "What type of investment did you sell" dropdown, choose Other.
5. For the "How did you receive this investment" dropdown, choose "I inherited it". 
6. Enter the date the home was sold. 
7. The Proceeds is your portion of the 1099-S.  And, according to the accountant the fair market value of the home was the same as your proceeds.