Additional Clarification -- The Ptnrship is husband and wife. The S Corp is the same husband, wife and their son. The Ptnrship checking account had more money at the time of land purchase. The Ptnrship recorded the land purchase price as a draw by the ptnrs. The S Corp recorded the purchase of the land as an asset with a corresponding payable. The ptnrs to be reimbursed when the improved property was sold.  The business of transferring the title was never taken care of.  The Ptnrship received a 1099-S from the abstract co for $515,000. The Ptnrship sent S Corp 1099-S for $515,000.  I thought that recognizing the receipt of the 1099-S from the abstract co and the sending of the 1099-S from the Ptnrship to the S Corp on form 1065 Sch D, form 8949 or 4797 would show a wash of the transaction.  The ptnrs are not trying to disguise a sale to evade taxes. I can not see the forest for the trees.