1099-S received from sale of home a few ?s

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sammy1205
sammy1205 Member Posts: 2 Newcomer

I received my 1099-S for sale of my primary home, owner for 6 years. I have not filed yet but have been imputing my stuff. I’m reading that it will go on schedule D and i will have to file a separate 8949? How do I do that if i efile my return?


Condo was purchased by me and my ex spouse 145k in 2016. We sold it in 2023 but have been divorced since 2018. Sale price was $298k so they sent me a 1099-s for 149k and him a separate one. The cost basis is confusing me because we paid 145k and my 1099 is for 149. The condo was sold to us by our then landlord and he was the bank, we paid nothing in closing costs etc just went to title company and signed, every month we paid him. We refinanced it in 2017 because said landlord passed away unexpectedly, to pay off his spouse. I’m very confused on the cost basis and how to list it?


TIA for any insight

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  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93
    edited February 22
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    It sounds like your 1099-S is reporting half of the sales prices to you and the other half to your ex, since $149k x 2 = $298k.

    Your cost basis will be half of the total basis in the home, so if the total basis in your home was $145k, the basis you would report on your tax return is $72,500 (half of 145k).

    Even if you meet the exclusion limit for reporting the gain on the sale of your home, you will still want to report the sale on your return because you received a Form 1099-S.

    Pages 3-8 of Pub 523 (link below) go over the exclusion limitations. Pages 8-10 detail how to determine your basis in the home (which may be different from the purchase price). Just be sure to only report your half of the basis when entering it on your tax return.

    https://www.irs.gov/pub/irs-pdf/p523.pdf

  • sammy1205
    sammy1205 Member Posts: 2 Newcomer
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    Ok thanks. Do you know how I file the 8949? All that comes up in my preview print is the schedule D. Do i just fill out a 8949 and mail it in if I efile?

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93
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    If Form 8949 is required as part of your return, the FreeTaxUSA software will automatically include it. If anything needs to be mailed in or attached to your return, the software will also provide those instructions.