An individual loaned money to another individual. The person loaning the money received, from the lawyer handling the matter, a 1099-S. The amount listed as gross proceeds was the amount of the loan. How should this be reported on his tax return?
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this was just a loan, form 1099-S is to report a sale or exchange of real estate, have your client,s lawer send an amendment form 1099-s -
Let me get this straight
OK, the guy loaning money gets a Form 1099-S as if he sold real estate? Was the loan repaid, and now the repayment is being treated like a sale? Somebody is telling it wrong, or the 1099-S needs to be corrected to zero.If you loan someone $20 and never see them again, it was probably worth it.Comment
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I can't believe this. I am assuming the lawyer drew up the promissory note? Or was this a sale of real estate where the seller retained a mortgage from the buyer for 100% of the sales price, and there is a proper installment sale involved? You never give out a 1099-S for mere loan proceeds.Originally posted by tronny View PostComment
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The person who received this 1099-S did contact the lawyer who drew up the agreement and was told that he is required to report it this way. The amount is some over $90,000. Since the lawyer appears to be sincere in how he's handled it, is it possible to report the tranaction on Schedule D with the cost basis being equal to gross proceeds? Any advise will be greatly appreciated.Comment
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Yeah
Yeah, on March 21, with an attorney like that, that's what I would do. Put some kind of description like "lmproperly issued 1099-S / Non taxable loan repayment".Originally posted by tronny View PostIf you loan someone $20 and never see them again, it was probably worth it.Comment
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