Business sale question.

[Kathytrevino]

Back in 2002, the husband and I bought a mom and pop motel. We lived there 4 yrs in the residence and also managed the motel. We sold it in 2008 contract for deed. We divorced in 2010 and the ex wrote off the interest on his taxes and I used my child credit on agreement.

He passed in 2024. I was on title. I made an agreement for an early buyout with the buyer, and took a 30k loss.

I did make a small profit. I haven't received a 1099s yet.

Do I add this profit on my tax form?

Thank you

[AmyC]

Yes. You had a sale of business property that you will report on Sch D, as if you sold a stock. Enter the date of purchase and sale, the basis and sales price. Your basis will be your purchase price minus depreciation plus or minus other things that happened through the years.

[Kathytrevino]

I forgot to mention, I wasn't on the mortgage, just the deed.

We purchased in 2002 and it sold after a 18 yr contract for deed. She still owed 70k on the property, but she took a 30k buyout of which I owed the bank 20k of that.

Where do I put that 10k amount? I lived there for 4yrs previously.

[AmyC]

1. The mortgage is irrelevant to the actual sales transaction. You enter the actual sales information with the sales price and the adjusted basis. See About Publication 551, Basis of Assets

2.The time you lived there was so long ago that it has no effect on the sale.

[Kathytrevino]

Thank you.

Is this something turbo tax has in the questions for me to answer or do I need a tax office to help me?

[AmyC]

You can do this and we are here to help. It is your taxes so if you want an expert to do your taxes, we understand. To do it yourself:

1. Go to income
2. Select stocks, crypto, bonds, OTHER
3. select Skip Import
4. Select the Other box - it says 1099-S - which is what you should have
5. Continue
6. Enter the information asked: Motel
7. type of investment - from the dropdown, select other
8. received - I purchased it
9. continue entering your purchase date, sale date, proceeds,  and cost basis.
10. Continue

If you decide that you need an expert to step in, you can ask for an expert review or let an expert do the work. Select the appropriate option from the Upgrade menu found on the left side of your screen.

[Kathytrevino]

Thank you so much for the reply!

I have not been given a 1099S as of yet from the title company.

[Vanessa A]

If you do not have one yet, contact the title company to find out if they will be sending one or if it got lost in the mail.  If they will not be and if you know the amount of the sale, you can enter it without the 1099-S using the information on your records.