Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-04-2015, 12:40 PM
Junior Member
 
Join Date: Feb 2015
Posts: 1
Can not figure how to file a 1099-S

My ex-husband and I owned 20 acres of land that we had planned to build a retirement home on. In the divorce, it is stated that my ex would continue to pay for the property to the lien holder and put the property up for sale. If the sale returned a profit, my husband was awarded to recoup all the payments he made and if there was any profit left after that, then that would be split between the both of us.

Well, my ex decided to sell the property at auction and sold the property for less than what was owed to the lien holder, which was a bank. The money for the sale went straight to the lien holder. My husband also owns his own business and the lien holder was the same back. The bank refinanced his business loan and added the remaining balance from the property to his business loan.

I received a 1099-S in the mail for half the sales price that the auctioned returned. I cant really figure out how to report this. Since you cant claim a loss on personal property, does that mean that the amount in box 2 of 1099-S has to be reported as income??? A little lost and all the reading has me somewhat confused. I am thinking that I may need to file a Schedule D and Form 8949 with my 1040???? Will this cause me to have pay taxes on the half the sales price? Just need a little clarification from all the legal talk.

Thank you very much!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-04-2015, 08:37 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
I received a 1099-S in the mail for half the sales price that the auctioned returned. I cant really figure out how to report this. Since you cant claim a loss on personal property, does that mean that the amount in box 2 of 1099-S has to be reported as income??? ======>>>>>>>>> Box 2, indicate the gross proceeds from the transaction ,usually the selling price. While you can deduct interest costs for investments, the deduction is limited to the investment income realized. If you sell at a loss compared to the purchase price, there won't be any investment income to be offset so your mortgage interest payments are lost as far as any tax benefit is concerned.

A little lost and all the reading has me somewhat confused. I am thinking that I may need to file a Schedule D and Form 8949 with my 1040????=====>>>>>>>>>>as you sell at a loss, this is treated as any long-term capital loss would be. You use it to offset any capital gains in the year of the sale long term first then short termand then up to $3k against other ordinary income. If any loss remains at that point, you carry the balance forward to the next tax year and repeat the process - against long term gains first, then short term gains, and then another $3kagainst other ordinary income. This process continues year-on until the loss is wiped out.

Will this cause me to have pay taxes on the half the sales price? ===========>>>>>>>>>>as mentioned boce; you do not need to pay taxes on the sale at a loss.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Trying to figure out pros/cons for filing separately or jointly adifrank For 2012 7 12-10-2012 10:15 AM
How do you figure self employment taxes and charitable donations? de3ik Sole-Proprietorship 5 12-02-2012 05:25 PM
Trying to figure out how to claim my son smb0314 Filing Requirements 1 01-07-2011 01:45 PM
How to figure value of inventory not purchased in 2009 shawal Miscellaneous 0 04-08-2010 04:45 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning