Should There Be A 1099-S?

Technical topics regarding tax preparation.
#1
CathysTaxes  
Moderator
Posts:
3557
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
Longtime client/friend of husband's got married in 2021. In 2022, they sold wife's condo. Here are the terms:

Condo sold to real estate agent for taking over the loan
Agent upgraded and sold condo
Agent gives Client's wife an additional $15,000.

Shouldn't agent issue 1099-S to client's wife for the $15,000 plus the loan pay off amount?

Thanks

P.S. One may have been issued already, client is going thru her emails to see if the documents were attached.
Cathy
CathysTaxes
 

#2
CathysTaxes  
Moderator
Posts:
3557
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
Just additional information. Property was transferred with a Quit Claim Deed. The Realtor used a LLC to sell the property and client is a member of the LLC.
Cathy
CathysTaxes
 

#3
JR1  
Posts:
6043
Joined:
21-Apr-2014 9:31am
Location:
Western 'burbs of Chicago
I thought they were only issued when over max exclusion amounts. I don't see many unless it's a nice sale.
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#4
CathysTaxes  
Moderator
Posts:
3557
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
JR1 wrote:I thought they were only issued when over max exclusion amounts. I don't see many unless it's a nice sale.


Not all homes are owner occupied.
Cathy
CathysTaxes
 

#5
marknyc  
Posts:
203
Joined:
28-Sep-2022 7:12pm
Location:
NY
I think a 1099-S should have been issued unless it was a sale of a principal residence where certain requirements were met that can eliminate the 1099-S filing requirement.

It's not unusual for a Substitute Form 1099-S to be completed at the time of closing and included with the pages of closing documents rather than prepared and filed the following January. So a careful check of the closing documents is advisable.
 

#6
Posts:
835
Joined:
1-Sep-2020 2:47pm
Location:
845-NY
There is a form that is filled out at a closing, with boxes to check that make the sale exempt from 1099-S reporting requirements.

(I learned this when a client sold a rental house last year, and when asked (from the closing attorney) for a 1099-S we stumbled upon the exceptions checklist that the sellers attorney (my client's attorney) had prepared and forged my clients signature, showing it was the sale of a primary residence and thereby exempt from a 1099S filing.)
 

#7
CathysTaxes  
Moderator
Posts:
3557
Joined:
21-Apr-2014 9:41am
Location:
Suburb of Chicago
Checked documents. There was no closing, just a quit claim deed from client to a LLC where I found out she is also a member. So it seems she should be getting a K1.
Cathy
CathysTaxes
 


Return to Taxation



Who is online

Users browsing this forum: Google [Bot], Google Adsense [Bot], JoJoCPA, kyle242gt, NGeorgiaCPA, Nilodop, Permanently-Diff, rbynaker, taxp2345, TexasTaxCPA, Trailman423 and 131 guests