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Level 1
March 27, 2024

1099S - Received with SSN, but filed on 1065

  • March 27, 2024
  • 2 replies
  • 7 views

client purchased a home with a partner to flip.  The purchase was reported on 1065 along with the costs of renovations and subsequent sale.  K-1's were issued to each partner.  One partner reached out after the fact to say he received a 1099S with his social security number.

How does he report to the IRS that the proceeds were already reported on 1065 and his share is on the K-1?

Thanks.

    2 replies

    IRonMaN
    Level 15
    March 28, 2024

    If the one partner got a 1099S, how did the partnership sell a house it didn't own?

    Slava Ukraini!
    BobKamman
    Level 15
    March 28, 2024

    I would wait until IRS asked.  They aren't going to read any attachment to his 1040, and why would they believe it anyway?  

    I doubt with budget cuts they're going to do 100% matching of 1099-S forms, anyway.  But we'll find out.