1099S for income reported on Sch C

[dmj4]

When client receives a 1099S and that income is on Sch C, do you ever do an entry on sch D and zero out with reported on Sch C?

Thanks!

[dyne]

WHY would this ever be reported on schedule C?

[Matt Sova]

Builder/remodeler

Perhaps the seller is a home builder or they have a business of purchasing, rehabbing and selling homes and they reported it on a 1099-S? That is all I can think of, but I have never run into that myself. Since I am not sure about it I would probably report it on Sch D then on a second line "See Revenues reported on attached Schedule C" with the sale amount as a cost. Then include in Sch C Revenues.

[dmj4]

Correct

They buy, remodel and sell homes for profit, so goes on a Sch C. They have as many as 4 or 5 at a time.

Thanks!

[JON]

Write

right in the description home sales reported on Schedule C and 0 income. I think you are right. I had a small builder and he never use to get the "S"... Things are changing.