4 sisters are named on the title to our father's home/land. We are selling, but only 1 sister is getting the proceeds. Do all 4 need 1099s or ONLY the 1 getting money?

[sjduran29]

Father's home/land has 4 daughters name on title, but only one daughter has had it for decades. She wants to sell, and lawyers say we all have to sign, but only she will get the proceeds. Do all 4 of us need a 1099S, or ONLY the one getting the proceeds? My part is 0%, so I don't understand why I would need a 1099S.

[Critter]

Talk to the lawyer ... but if she is the only one getting any money then the 1099-S should only be in her name and only she needs to report it.  You may all need to "quit claim" the property to her.

[Opus 17 · Accepted solution]

If the sale has not closed yet, and the other 3 siblings are ok with not getting anything, then the easiest thing to do is for each sibling to give their ownership share to the 4th sibling via a quit claim deed.  Then there will be only one owner who will be responsible for all the taxes (if any).

Otherwise, if the current deed does not specify an ownership percentage, the default assumption is that all the owners are equal shareholders.  You would each get a share of the proceeds and be responsible for a share of the taxes.  If you then gave your share of money to one sibling it would be treated as a gift but you would still owe the tax in the eyes of the IRS since you are an equal share owner.

So you do need to discuss this with your attorney in advance, and probably just give your shares to your sibling.