taxes on second home sales when cosigners on mortgage

[ctweed31]

Both of our children sold homes this year that we were co-signers on. We did not pay the mortgage payments on the homes they did as it was their primary residence. All of the proceeds of the sale went directly to them. We received a 1099-s for one of the sales showing our portion of the proceeds was $0, however on the other one the bank made the check out to all 3 of our names but all of the funds were deposited into my daughter's account. We did not receive a 1099-s for that one. Do we have to pay taxes on that one since the check was made out to all 3 even if she kept the money?

[R-SchuleCPA]

My opinion - A Cosigner guarantees performance but does not assume tax liability. However you did receive a 1099 which requires a reporting obligation to the IRS. My advice is to report sale per 1099, so that the IRS will see that that you reported the transaction, and then to avoid tax, claim a basis in the sale equal to the 1099 amount for a net gain of $0.  

[ctweed31]

The one 1099 was $0 so that one I am good on, the other sale I did not get a 1099 and not sure if I will get one or not. If I don't receive one do we have to report the sale?