Sold vacant property in 2021

[pstewart]

In 2021 my husband and I sold 16 acres of vacant property in Ohio.  We live in North Carolina.  We received 2 1099S forms, one for my husband and one for me, his wife.  We will have to pay capital gains on this sale.  What form do we use to enter the selling information and any deductions?  Do we pay capital gains tax to the state of Ohio along with the Federal Capital gains tax?

What do we do with the 1099S forms?

Thank you,

Patti Stewart

[ColeenD3]

Yes, you will potentially have to pay tax on the gain to both NC and OH, depending on the amount of gain.

Since this is a capital gain, you will need Schedule D, which is in the Premier Edition.

If each 1099-S has the full sales price, enter only one.

Spouses.

If the transferors were spouses at the time of closing, who held the property as joint tenants, tenants by the entirety, tenants in common, or as community property, treat them as a single transferor. Only one Form 1099-S showing either of them as the transferor is required. You need not request an allocation of gross proceeds if spouses are the only transferors. But if you receive an uncontested allocation of gross proceeds from them, file Form 1099-S for each spouse according to the allocation. If there are other transferors, you must make a reasonable effort to contact either spouse to request an allocation.

1099-S