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  1. #1
    toklor1 is offline Junior Member
    Join Date
    Oct 2006
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    Reporting 1099-S by Title Company

    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 . . .
  2. #2
    LdiJ is online now Senior Member
    Join Date
    May 2004
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    65,917
    Quote Originally Posted by toklor1 View Post
    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.
  3. #3
    abezon is offline Senior Member
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    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!
    This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post.

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