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Reporting 1099-S by Title Company

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toklor1

Junior Member
What is the name of your state? OR

Father's estate has been probated and complete with tax returns in. Full estate less than $500,000. Brother and sister have JUST sold one of the small homes. Title company will issue 1099-S for each sibling in equal amounts. Do we need to file tax returns for this income? If this is non-taxable to us, how do we say . . . 'ignore' the 1099-S. Isn't there a certificate such as the $250,000/$500,000 home residence sort of thing?

Anyway, how do we report , or not report this sale to the IRS?

Thank you . . .
 


LdiJ

Senior Member
What is the name of your state? OR

Father's estate has been probated and complete with tax returns in. Full estate less than $500,000. Brother and sister have JUST sold one of the small homes. Title company will issue 1099-S for each sibling in equal amounts. Do we need to file tax returns for this income? If this is non-taxable to us, how do we say . . . 'ignore' the 1099-S. Isn't there a certificate such as the $250,000/$500,000 home residence sort of thing?

Anyway, how do we report , or not report this sale to the IRS?

Thank you . . .
You will be reporting it on Schedule D as a sale of a capital asset. Your "cost" will be the fair market value as of the date of death plus selling costs. There is unlikely to be much, if any, gain, therefore mostly likely you won't owe any tax.
 

abezon

Senior Member
If neither heir lived in the house, it was 'investment' property & its sale soon after father's death will probably result in a net loss, which is deductible ($3000/yr) against ordinary income. So...... declaring the income on Schedule D actually saves money. If the house was a rental after dad's death, see a tax pro!
 

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