1099S disbursement

Forum|Forum|2 months ago
April 6, 2026
3 replies
7 views

1099s shows a $325000 contract price but client was disbursed $80,377.81. What do i need to do to complete asset capital gains? Should I put in the 325,000 or the 80,377 as shown in the disbursement summary from the Title company?

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sjrcpa

Level 15

$325,000 is the reportable sale price. Basis and expenses of sale can be subtracted from that to compute the taxable gain.

You need the settlement statement.

Since they got so little probably a mortgage was paid off. No tax effect for this.

The more I know the more I don’t know.

BobKamman

Level 15

There is no tax effect to borrowing $200,000 against a property with zero basis. There is a large effect to selling a property with zero basis, regardless of the amount of mortgage on it.

qbteachmt

Level 15

$80,377.81 is the final banking. Not the sale. Paying off the mortgage debt is not an expense of the sale. Direct costs, such as closing, commissions, are the costs of selling. Paying off the mortgage is what happened to the rest of the money the seller didn't get to keep, since there was debt.

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