How to file 1099-s with 1031 exchange 8824

[Em1]

I receive a 1099-s for sale of a rental property which I exchanged in a 1031 exchange. I filled out form 8824 (in forms, TT did not prompt me!), but I can't find where to enter the 1099-S info. I'm afraid I'll get audited if I don't include it.

[Anonymous_]

Did you receive boot?

If not, then you do not need to bother with the 1099-S.

[Em1]

I went to IRS website and it says: "if you are reporting a like-kind exchange of property for which no gross proceeds are reportable, enter -0- (zero) in box 2 and enter an “X” in the checkbox in box 4." In our case, escrow company that prepared 1099-S checked box 4 but entered FULL SALE PRICE in box 2! I'm terrified that we will have to pay taxes on that.

[Anonymous_]

You can try to contact the escrow agent, but it would be a simple letter of explanation if you are ever questioned by the IRS.

[Em1]

thank you!

[fanfare]

when you receive a 1099-S, report exactly as you would if you did not get a 1099-S.

Of course, if the 1099-S is incorrect, that's a horse of a different color.

[Em1]

Regarding the 1099-S, I have gotten several replies from various experts: One is that the 1099-S should never have been filed, another that the entry in Line 2 should be zero and box 4 checked (from IRS website), and the 3rd that I don't need to worry that the full sales price was listed on line 2, with box 4 checked, if I file Form 8824 to explain the 1031 exchange. I'm still a little nervous, but less so.

[DianeW777]

File Form 8824 and keep the 1099-S in your file. It's not necessary to be concerned with it when you complete your 1031 exchange. As indicated by tagteam a simple letter of explanation can be completed if the IRS does inquire. However unlikely since your return will have the Form 8824 with your return showing the 1031 like kind exchange.  There is no need to be nervous.

@Em1