Second Home Sale

[jguero30]

My wife and her daughter sold a condo and the split the money they made on the sale. However, my wife's name is the only one in the IRS form (Which shows the complete amount). How can she claimed only the her split from the sale?

[DoninGA]

Was not the daughter on the title for the condo also? 

If she was then she should have received a Form 1099-S but with only one-half of the proceeds and your wife should have also received a Form 1099-S with one-half of the proceeds.

If your wife was the only one on the title to the property then all of the proceeds from the sale would be reported on the Form 1099-S and are entered on her tax return.

[jguero30]

Is there a way to avoid or correct even though my wife is the only one in the 1099? The fact is that her daughter has the other half.

[rjs]

Your earlier discussion of the same issue:

Does my wife has to pay capital gains tax if she sold a second home she had with her daughter and th...

You never said who actually owned the condo. Whose name was on the deed before it was sold? That's what matters. The proceeds of the sale belong to the owner who was named on the deed. Splitting the proceeds does not make the daughter an owner if her name was not on the deed. If your wife was the only owner, then the entire gain from the sale is income to your wife, and she has to pay all the tax on the gain. If your wife gave half the proceeds to her daughter, she made a gift to her daughter, and we can tell you what she has to do about that. But if that's what happened, the gift is a totally separate transaction that has nothing to do with the sale of the condo, as far as taxes are concerned.

It doesn't matter whose name was on the mortgage. What matters is whose name was on the deed.

So who owned the condo before it was sold?

In what year was the condo sold? 2018?

What is the "IRS form" that your wife got? Is it Form 1099-S?

[jguero30]

Both my wife's and her daughter's name is the deed. I found them in the "limited warranty deed" and "cancellation of deed to secure debt" in the settlement papers of the sale.

The loan was under my wife's name and the 1099 has only her name. 

So, can she claim the $$$ she kept?

Thanks for your guidance,

Tony

[DoninGA]

Since both your wife and her daughter were owners of the property then the closing agent should have issued a separate Form 1099-S to each of them.  

You need to contact the closing agent to get a corrected 1099-S for your wife and another 1099-S issued to her daughter so each of them can report the sale of the property on their tax returns.

[jguero30]

Thank you.