Form 1099-S Sale of Inherited Property by County Court Clerk to Settle Estate

[LPT5]

I received a Form 1099-S from a County Chancery Court Clerk and Master's Office for the sale of my uncle's property, which was sold at a county auction to settle his estate.  Please note that the Transferor's TIN box is blank on the form. My SSN is not shown.

My uncle died without a will and I was one of three heirs. The property was sold approx. 2 years after his death, at the auction for $48,000.00-full sale price listed as gross proceeds in box 2.   Attorney fees, clerk's expenses for services and the executor's expenses were paid out of the proceeds of the sale as well.

Do I need to report this transaction? If so, where and what amount should be reported...should it be the amount I actually received?

[tagteam · Accepted solution]

Was someone handling your uncle's estate? 

You should make sure there was no administrator who could, potentially, file a 1041 and issue a K-1 to you which might include the sales proceeds. 

Otherwise, your basis would usually be the fair market value as of your uncle's date of death which would be subtracted from the selling price (less expenses) to arrive at your gain or loss for tax purposes.

You would report the transaction primarily the same way you would report the sale of any other property held for investment. 

[LPT5]

Yes, there was an administrator that could file a 1041 and issue me a K-1. I haven't received one yet though. Do you know the date the administrator was required to send it out by?

I'm using Turbotax Deluxe, is this sufficient or will I need Turbotax Premier?

[tagteam]

If you receive a K-1 and are using the online version of Deluxe, you will need to upgrade to Premier in order to enter the information on the K-1.

The due date for the 1041 (for the 2020 tax year) is April 15, 2021 so the K-1 should follow on or before that date, but you should check with the administrator immediately so that you are aware of the procedure the administrator is intending to follow.

[LPT5]

I appreciate your assistance, thank  you.