• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

1099 shows Sales price, not actual proceeds.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Mark2365

Member
What is the name of your state? Arizona
Hello, people.

In Arizona, after selling a house in 2019, I received a 1099 with Box 2 showing the SALES Price.
That amount is much larger than what I actually received. Is that OK?
I THOUGHT the 1099 should show the actual amount received. I'm wrong there?
Of course, I do have the Final Settlement Statement which shows the actual amount received.
Thanks.
Mark2365
 


Zigner

Senior Member, Non-Attorney
What is the name of your state? Arizona
Hello, people.

In Arizona, after selling a house in 2019, I received a 1099 with Box 2 showing the SALES Price.
That amount is much larger than what I actually received. Is that OK?
I THOUGHT the 1099 should show the actual amount received. I'm wrong there?
Of course, I do have the Final Settlement Statement which shows the actual amount received.
Thanks.
Mark2365
It is absolutely correct. You RECEIVED the amount that the house sold for. Then, on your behalf, amounts were paid out to others, with the balance being given to you.
 

adjusterjack

Senior Member
If this was your primary residence for the appropriate amount of time and your gain was less than $250K ($500K if married) then it wouldn't matter what the figure was.
 

LdiJ

Senior Member
What is the name of your state? Arizona
Hello, people.

In Arizona, after selling a house in 2019, I received a 1099 with Box 2 showing the SALES Price.
That amount is much larger than what I actually received. Is that OK?
I THOUGHT the 1099 should show the actual amount received. I'm wrong there?
Of course, I do have the Final Settlement Statement which shows the actual amount received.
Thanks.
Mark2365
Its not only OK, its absolutely correct. It doesn't matter what you walked away from the closing table with, your taxes are based on the following formula:

(Sales price minus selling expenses) - (What you originally paid for the home plus major improvements) = Capital Gain or Loss.
 

Taxing Matters

Overtaxed Member
If this was your primary residence for the appropriate amount of time and your gain was less than $250K ($500K if married) then it wouldn't matter what the figure was.
It absolutely does matter what the figure is. The seller must report the gross sales price, as it apparently did, and the OP wants to use that in his/her reporting of the sale on his/her tax returns so that things match up when the IRS checks the return against the 1099. It is true that the OP might not have any tax to pay after all the numbers are crunched, but that's a wholly different matter than what is required for reporting.
 

davew9128

Junior Member
If this was your primary residence for the appropriate amount of time and your gain was less than $250K ($500K if married) then it wouldn't matter what the figure was.
You assume the home was never rented or otherwise used for any business purposes.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top