No wonder people need help with taxes

[DonPriebe]

My wife just received a 1099-S from the sale of her mother's house. She passed away almost a year ago - the house was willed to the three children. The 1099-S looks to be about one-third of the proceeds ... no problem.

On the paper the 1099-S was printed on are these instructions ...

... If the real estate transferred was your principle residence, file Form 2119 ...

Am I in a time warp? Are they using forms that are ten years old? Would the lady at 1-800-TAX-FORM laugh if I requested one?

[Uncle Sam]

What date was the version of 1099-S?

[DonPriebe]

What date was the version of 1099-S?

It was a generic "Substitute Form 1099S", printed on the same page as the instructions. The year was not part of the form graphics, but was printed in just like the names and amounts. The closing was January 6, so this is a 2009 1099S.

[Speedy service on the 1099-S. Wonder how long it will take before she sees the check?]

[ChEAr$]

1099s

Are they not required to be issued if gross proceeds exceed 500,000?

I don't know; haven't seen one in a really Loooong time.

[DonPriebe]

Are they {1099-S} not required to be issued if gross proceeds exceed 500,000?

I don't know; haven't seen one in a really Loooong time.

I think that's the rule if the seller signs a declaration that it was his principal residence and he meets the exclusion rules. But this was an inherited two bedroom one bath house in a small town in Ohio. None of the sellers (siblings) lived there. Well under $100,000.

[FEDUKE404]

Another possibility

Never underestimate the need for the CYA shuffle by the attorney. It prevents them from encountering "surprises" if residence had been used for business purposes, failed residency rules for exclusion, part of estates, and much more.

I had one client whose home was sold (auctioned) for less than $100k, and a Form 1099-S showed up in the mail.

Yes, it was a modest home and, yes, client had lived there until move to retirement facility shortly before the sale.

FE

[DonPriebe]

There is no doubt that the 1099-S was appropriate. What surprised me was the instructions re Form 2119.

[ChEAr$]

Here's one way it was handled.

I think that's the rule if the seller signs a declaration that it was his principal residence and he meets the exclusion rules. But this was an inherited two bedroom one bath house in a small town in Ohio. None of the sellers (siblings) lived there. Well under $100,000.

A former client (because I read her the riot act and exposed the attorney's lack of tax law)
was handling estate of her deceased father of four years. Finally she sold the old house.
Attorney found out it had been father's principal residence for many years, so he has her
sign a letter to that effect and thus exempted him from having to issue 1099S to the four
siblings.

Of course the house had appreciated in value since DOD.