Single No Proceeds $0 From House Sale 1099-S (TT Deluxe 2024)

[SingleNoProceedsFromHouse1099S]

Subject: Trouble Reporting Home Sale on 1099-S When I Received $0 Proceeds (Divorce-Related)

I'm using TurboTax Deluxe 2024 to file my 2024 return and am running into a problem with reporting a home sale.

Background:

• I divorced in 2024.

• TurboTax recommends I file as "Single."

• Before the divorce was finalized, my ex-spouse and I sold our jointly owned home.

• Per the divorce judgment, I received $0 proceeds from the sale.

• The 1099-S I received reflects $0 in proceeds, as expected.

The Issue:

• TurboTax asks if I received a 1099-S. When I say "yes," it forces me to enter all home sale info: purchase price, sale price, address, etc.

• Nowhere does it allow me to indicate that I received no proceeds or had no capital gain.

• On Schedule D, Worksheet 1 (d), it labels the field as “Proceeds (selling price),” which adds confusion — "proceeds" and "selling price" are not the same in this case.

• I tried to adjust the sale info or basis to reflect that I had no financial gain, but TurboTax still calculates a large capital gain and taxes it.

• I am not claiming the $250,000 exclusion — I just want the sale properly reflected as generating no gain to me.

Support Experience:

• A TurboTax agent told me that I shouldn’t need to report the sale at all and that I could simply mail the 1099-S to the IRS with a note — but I was disconnected before she could confirm or explain further.

My Questions:

1. Has anyone dealt with a similar situation (divorce + 1099-S + no proceeds)?

2. How did you report it properly in TurboTax?

3. Is there a way to enter an adjustment (e.g., Code "O" or similar) to offset the gain on the home sale?

Any help or clarification would be appreciated. Thanks!

[MinhT1]

As your form 1099-S indicate 0 proceeds, you do not have to enter it on your tax return. 

Just keep the form in your tax records.