ammcculloch
Level 1

Hello,  after reading many questions and responses in this community regarding this problem with the new Schedule D and 1099-B worksheets, I am still unsure of how I report a 1099-S for someone who received it for their non-primary residence.  In this case it is an inherited property that was sold 2 years after the death.  

I am understanding, and fine with, reporting the information in the new 1099-B worksheet by scrolling down to the section that looks like the old Schedule D.  My question is how do I enter it so that the IRS knows that we received and are reporting a 1099-S when the only worksheet that asks "was a 1099-S received, yes or no" on the Home Sale worksheet?  There is no mention of a 1099-S when I zoom into the capital gain adjustments worksheet through 1099-B.  Just trying to avoid getting the IRS mismatch information letters.

Originally, if we received a 1099-S we were just using the Home Sale worksheet and filling it out the questionnaire (Part II) to not claim the home sale exclusion.  It does then flow to the Schedule D, and I'm able to say "yes we did receive a 1099-S". But after over-thinking the issue, I'm unsure if I should be entering them this way.  

Thank you in advance for any responses!

0 Cheers
dkh
Level 15

No requirement to say you received 1099-S.  I always make sure the amount reported as Proceeds/Sales Price on Schedule D is same as 1099-S.   So when/if IRS does document matching I'm covered.

Hope this helps.

View solution in original post

ammcculloch
Level 1

Thank you! I did look at the 1099-S instructions on the IRS website and couldn't determine whether reporting the 1099-S a certain way was required.

That does answer my question!  Thank you again.

dkh
Level 15

You are welcome. 😊