I sold a lake house last August. I received a 1099S from the closing attorney, what do I do with it? Don Odom

[dmaodom]

Need a better simple answer,
Where or how I file a 1099S?

[rjs]

You do not actually enter the Form 1099-S in TurboTax.

Report the sale of the house as an investment sale for which you did not get a 1099-B, in the same place that you would report a sale of stock.

• For the description, enter "Second home" or "Inherited home."
• Enter the date sold, date acquired, proceeds, and basis. If you sold an inherited home, enter "Inherited" for the date acquired.
• For the holding period select "Short term (Box C)" or "Long term (Box F)," depending on whether or not you owned it for more than a year. An inherited home is always long-term, no matter how long you or the deceased actually owned it.
• When you get to the screen that says "Select any less common adjustments that apply," check the box that says "Any loss from this sale is not deductible. . . ." Then select "This is personal use property" as the reason.

You cannot report the sale in TurboTax Free Edition. You will have to upgrade to Premier, or use any edition of the CD/Download TurboTax software.

[jimliz2]

Don,

My best understanding of the1099-S form is that it became the mechanism (visa-vi Dodd-Frank) from recording the transfer of property even if that property is your main home. So unlike a 1099-INT which reports simple interest income the 1099-S does not give you a box with a number that corresponds to a line on your 1040 form.

The irs.gov website does have a detailed instruction booklet for the 1099-S including a helpful section of real estate sales that are excluded from federal taxation. Regarding, the sale of real estate quite a few questions not noted on a 1099-S determine taxable income from the sale:

1. Was it your primary residence?

2. How long did you own the real estate?

3. Does the profit from the sale of the real estate fall under another excluded category for tax purposes?

Ultimately, the real estate sale will most likely be reported as a capital gain/loss on Schedule D just like the sale of a stock, which involves how much you paid for the property, date of purchase, additions/improvements main since purchase or inheritance, sale price, etc. If you are having difficulty in that area I am more than happy to help or you may find answers to specific questions already posted.

The gross proceeds listed on the 1099-S is most likely not the taxable value of the sale. The form is required to be submitted by the transferring/closing agent (often an attorney) on any real estate transfer, which is to say it's primary role is to provide a federal record of the real estate transfer.