1099-S for foreign properties

[Nn2018]

I sold a foreign rental property and reported a gain from this sale on my return in TurboTax. I have never received a 1099-S for this transaction. Is it required / expected for sales of foreign properties? I had an overseas real estate agent & title company, but they did not file anything.

[Opus 17]

There's no way to require foreign entities outside the US to file US tax paperwork, so you would not expect a foreign sale to result in a 1099-S.  You are still required to report and pay capital gains tax following US tax law (assuming you are a US citizen, green card holder, or resident alien, which makes you subject to US tax law).  If you also pay tax in the foreign country, you may be able to take a deduction or credit on your US tax return for the foreign taxes paid on the same income.  Also, some countries may calculate capital gains using different rules, or have an inflation adjustment, but on your US return you will figure the gain and tax by US rules. 

[Loretta P]

Hello @Nn2018 congratulations on the sale of your foreign rental property.  The 1099-S is a US form not used normally outside the US.  I've sold homes in the US in which I did not receive a 1099-S.  You are required to report the sale whether you receive a 1099-S or not.  So long as you have reported the sale your return should be fine.  

[tkoin1]

In my case the properties were gifted to several beneficiaries, one of which was a custodian who did everything and eventually divided and wired the money to the rest of the beneficiaries. I do not have the address (just the country where the properties resided). Do I have to use form 1099S? or 1099B? Or can't I just use the form 8949 and be done with it?

Thanks!

[JamesG1]

The sale is reported on IRS Schedule D.  If you do not have a basis, report $0 basis and the proceeds that you received.  In TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• You may need to click Add more income.
• Scroll down to Investments and Savings, click on the dropdown menu.
• Click Start/Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
• Click Add investments.
• At the screen Let’s import your tax info, select Enter a different way.
• At the screen OK, let’s start with one investment type, select Other.  Click Continue.
• At the screen Tell us more about this sale, enter “Land” or an appropriate description.  Click Continue.
• At the screen Now, enter one sale…, enter the sale information.
• At Tax Tools / Print Center, view Schedule D / IRS form 8949 to review the entry.

[tkoin1]

Your instructions here are different than the one given in the post I created. This one is simpler and doesn't seem to involve 1099B which I did not receive. It is the same situation, is there a reason you recommend to go through 1099B in my other post? I'm using the desktop version

[DaveF1006]

You report the sale as outlined by James G1. You report this as other as James suggested since you did not receive a 1099B for the sale. In fact, when you choose this is an investment type, you will notice the small print under other that mentions 1099S. 

Once this is reported, it will be reported on Schedule D. Not sure why 1099 B was mentioned previously because 1099 B is for the sale of stock and bonds. 

@tkoin1 

[tkoin1]

Can I use the date I received the wire transfer as the date sold? I do not have the date sold. I believe there are several properties and they are sold across several dates. 

[tkoin1]

After I entered it I do not see it on 8949 thought the total is included but no line item for it. 

[AmyC]

Capital assets do go on the 8949. If you entered it in the stocks and bonds and other sales, where a 1099-B is reported, then it should be showing for you on the 8949 and sch D.

@tkoin1 

[tkoin1]

I just realized you can scroll up on the side and it's hiding under there.  Thanks.