1099-S Form: Proceeds From Real Estate Transactions

Jeb
Jeb Member Posts: 1 Newcomer
edited December 2024 in Income

How do I report income from a 1099-S Form (Proceeds From Real Estate Transactions)?

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Best Answer

  • CorinaE
    CorinaE FreeTaxUSA Agent Posts: 23
    Answer ✓

    The type of transaction for which you received the 1099-S determines where it is reported on your tax return.

    If it is for the sale of your main home, you would enter your form in our software by clicking 'Income' on the menu bar and selecting 'Sale of Main Home' from the drop-down menu.

    If it is for the sale of a vacation home, investment property, or land; you would enter your form in our software by clicking 'Income' on the menu bar and selecting 'Investments and Savings' from the drop-down menu. You would enter this as an "Other Sale".

    If it is for the sale of a rental property, you would enter your rental information (click 'Income' > 'Rental Income (Schedule E)' and report the sale when you report the property in the "Depreciable Asset" section of the Schedule E. To do this you would enter a date for the box indicating "Date Sold, Disposed of, or Retired" on the "Tell us about your asset" page.

Answers

  • Joyfuljaws5
    Joyfuljaws5 Member Posts: 7 Newcomer

    it was from PGE putting equipment on my property!!

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 218
    https://community.freetaxusa.com/discussion/comment/5148#Comment_5148

    If this isn’t a full property sale, report it under the “Investments and Savings” income section, select "+ Add an Investment",  and choose “Other Investment” instead of a 1099 form. If the sale amount equals your basis, you'll report a $0 capital gain.

     Generally, your basis is the fair market value of the portion of land at the time you inherited it, and the sales price is what you received for it.

    For example, if the land was worth $50,000 when inherited and the easement affects 5% of it, your basis would be $2,500.

    If your situation is different from what I'm referencing above, please contact Support from within your account and you will be able to provide them with more detailed information regarding your particular situation.

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