Sale of Primary Residence

Forum|Forum|6 years ago
March 23, 2020
1 reply
13 views

My client and his sister sold the house at a 50% allocation. They were issued a joint 1099-S. To allocate correctly i need to enter the entire sale per 1099S then create a negative contra sale to allocate the correct gain? Thanks!

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BobKamman

Level 15

Were two checks issued, or just one? If two checks, the 1099 issuer should provide separate forms. Why is it needed anyway -- was it not the primary residence for both, or were the proceeds more than $500K?

I would add to basis the half paid to the sister. See my forthcoming treatise in 10 volumes, "How To Trick The IRS Computer."

N

NGRAuthor

Level 2

Unfortunately 2 checks. 1 1099S.

Brother and sister whose mom passed Away. I have the adjusted basis from the date of death. If it’s sold at a loss. Does this even matter or can I just report the sale on the brothers return?

BobKamman

Level 15

For example,

House sold for $200K

FMV at DOD: $200K

Selling costs: $16,000

On brother's return, report sale of $200K because that is what was erroneously reported to IRS and they don't want to go back to the people they hired and ask that it be done right.

Report basis and expense of sale as $208K -- his actual basis of $100K; the proceeds that were paid to hs co-owner of $100K; and his half of the selling expenses. Loss of $8K is allowed.

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