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legner
New Member

I sold my father's home. It was in a life estate shared by 4 people. My share was 38,539.65. 1099-s said gross proceeds were 41477.52. Where do I enter this info??

 
4 Replies
HelenC12
Expert Alumni

I sold my father's home. It was in a life estate shared by 4 people. My share was 38,539.65. 1099-s said gross proceeds were 41477.52. Where do I enter this info??

Please read the information below before entering. To enter the 1099-S form, see Where do I enter Form 1099-S?

 

The IRS matches the amount on the 1099-S form to the amount reported on your income tax return. Since your share of $38,539.65 is different than the amount on the 1099-S, $41,477.52, you have two options on how to report this. 

 

Option #1:

  1. Report 100% of the proceeds, even though your 1099-S form shows a different amount.  
  2. The other people won't have to report the sale on their income tax return.
  3. For additional information see TurboTaxMichaelL1's answer here.  

Option #2:

When you receive a Form 1099-S for amounts that actually belong to another person or entity, you are considered a nominee recipient. You should file a Form 1099-S with the IRS (the same type of Form 1099 you received).  File the new Form 1099-S with Form 1096 (this is a transmittal for the 1099-S) by mailing to the Internal Revenue Service Center for your area.

  1. On the new Form 1099-S, list yourself as the payer and the other owners, as the recipients.
  2. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099-S to show the amount for each owner.
  3. The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:  Click here to order forms or publications from the IRS.
  4. For additional information see TurboTaxDianeW's answer here.  

 

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wwperkins44
Level 1

I sold my father's home. It was in a life estate shared by 4 people. My share was 38,539.65. 1099-s said gross proceeds were 41477.52. Where do I enter this info??

I am in pretty much the same situation with my mother's home. My question is which version of TurboTax do I need to show this? I bought TurboTax Deluxe (my usual) but it's looking like I need the Premiere to show the sale of an inherited home. Any help appreciated.

JeffreyR77
Expert Alumni

I sold my father's home. It was in a life estate shared by 4 people. My share was 38,539.65. 1099-s said gross proceeds were 41477.52. Where do I enter this info??

Yes, you are correct.  You will need TurboTax Premier to report the sale of your father's home on your personal tax return.    

 

To enter this transaction in TurboTax Online or Desktop, please follow these steps:

 

  1. Once you are in your tax return, click on the Federal Taxes tab (Personal tab in TurboTax Home & Business)
  2. Next click on Wages & Income (Personal Income in TurboTax Home & Business)
  3. Next click on I’ll choose what I work on (jump to full list or show more income)
  4. Scroll down the screen until to come to the section Investment Income
  5. Choose Stocks, Mutual Funds, Bonds, Other and select start (or update if you have already worked on this section)
  6. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer yes to this question)
  7. Since you did not receive a 1099-B, answer no to the 1099-B question
  8. Choose type of investment you sold - select everything else
  9. Some basic information:
    1. Description –  Usually the address of the property sold
    2. Sales Proceeds – Your proportionate share of the net proceeds from the sale (your portion of 1099-S amount received for the property)
    3. Date Sold – Date you sold the property (on 1099-S)
  10. Tell us how you acquired the property - inheritance
  11. Enter the date inherited
  12. Enter your fair market value - Your proportionate share of the Fair Market Value of the property at the time of inheritance plus any capital improvements since inheriting it 
  13. If you had a loss, on the question of "Did you use this property for business or investment?" If the inherited house was not used for any personal use (no family member lived in it or used it between the time of inheritance and the sale), you will answer that this was for investment
wwperkins44
Level 1

I sold my father's home. It was in a life estate shared by 4 people. My share was 38,539.65. 1099-s said gross proceeds were 41477.52. Where do I enter this info??

Thank you much for the prompt reply and answering my question!

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