1099-B regular member share of sale of club property

Forum|Forum|2 years ago
January 31, 2024
1 reply
6 views

A long time club (with bar) had to close permanently during covid epidemic. They sold the club building in 2023. A client, who was regular voting member/owner, received 2023 1099-B marked as following: Box 1D, Gross proceeds: (approximately) $10,000.00 Box 2: SHORT TERM GAIN BOX CHECKED. and that is it on form. no dates, no cost basis, no description of property. All client paid was annual dues over the many years. It looks like no cost basis? Also, I am not sure why it was not marked as a LONG TERM GAIN, INSTEAD OF SHORT TERM GAIN?. (I think payout to each member was based on how many years each was a member, but not 100% sure). Thanks.

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Best answer by TiredFarmer

Had one similar a couple years back and sent them back for more information because the only information they could give me was "I got this in the mail do I need it for my taxes?" It turned out to be a good thing because someone had tried to do the paperwork but didn't know all the facts and "the club accountant" did correct paperwork and included a statement with the other needed information.

T

TiredFarmerAnswer

Level 6

Had one similar a couple years back and sent them back for more information because the only information they could give me was "I got this in the mail do I need it for my taxes?" It turned out to be a good thing because someone had tried to do the paperwork but didn't know all the facts and "the club accountant" did correct paperwork and included a statement with the other needed information.

PATAXAuthor

Level 12

@TiredFarmer thanks for the information, I appreciate it. I asked him who prepared the 1099-b and he said he thought an attorney prepared it. If it was a long-term sale then there may not be a problem since his/and wife income is not that high and he might be in a 0% ltcg tax bracket. I don't know why they marked it short-term.

T

TiredFarmer

Level 6

Maybe just clerical error...when the one I had corrected it was long-term.

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