I originally put this post on another post that dealt with the sale of land, but didn't receive any responses. So I decided to list this separately. Hope it is not a problem.
My client and siblings inherited land several years ago and just sold it in 2019. He and his 4 siblings were in a heated discussion for a few years about selling the land, for how much, etc. A couple options to sell fell through. A couple siblings wanted to sell and the others didn't. So about 3 years ago my client paid several thousand dollars to a lawyer to settle the argument in court concerning what they would do. It was agreed to sell it. Now that it is sold, can the lawyer fees for this court ordeal be used in the calculation of the gain/loss even though it was a few years ago? Another lawyer was used for the closing in 2019 but a commissioner was hired for court. Also, would this transaction just be entered on Schedule D? I will be using the FMV at the time of the death and, it may come out to a loss. I haven't done the full calculations yet because the figures I have seen need adjustments that the lawyer is working on. My client is having a hard time getting a 1099 statement for his share from the lawyer. I am trying to prepare the return for the sale and would like some guidance. I have read a couple pubs but still need guidance. If it comes out to a loss, and he doesn't receive a 1099, can I still report it? I would like to report the sale to make things clean on the sale. Thanks for any responses.