Any reason to include a non-reported sale with no gain on return

[JBP]

My client's father gave his condo to his three daughters (he's still alive). They sold it for essentially the same price that he originally purchased it for. My client and her two sisters each received 1/3 of proceeds.

With no 1099-S issued, and no gain, is there any reason to report this on her return?

For some reason I'm just not thinking clearly on this one. Maybe because it's April 9.

Thanks.

[ATSMAN]

If there was no personal use of this condo then it can be claimed as an investment property and the cost of sale (attorney, RE sales commission, tax and transfer fees) can be added to basis to create a small loss on sale. then a 8949 is required.

[Uncle Sam]

What about the father filing Form 709 - to report the transfer of value to the daughters for gift tax purposes? That will at least establish a value for "basis" since it's cost basis even though FMV is used for gift tax value.

[kathyc2]

Unless all three indicated that they lived there as their principal residence, they should have received a 1099S. A lot of times title companies will not send the 1099S in January, but enclose it as part of the closing documents. What is the big deal about reporting it to stave off an IRS inquiry if a 1099S was correctly issued?

[Burke]

I agree. They may think they did not receive a 1099-S but the closing agent is required to send them to the IRS. They should have been required to furnish SSN's. Are you sure he actually transferred the title before sale? Or was it sold still in his name? Do you have the settlement statement? .

[kamckinley]

Unless it's a personal residence, aren't you required to report it, 1099-S or not? It wouldn't have even entered my mind to not report this transaction on a client's tax return.

[spanel]

Why would you NOT report this. What do you have to gain by not reporting it?? Lower prep fees? Whats to lose? IRS audit?

Form or not, you know they have an obligation to report it, its on YOU if you dont report it at this point.

As well, was the Gift tax return filed to establish basis?

Chris

[JBP]

Thank you -- I asked for reasons and received them!

I have the settlement and basis documentation, and had already done the leg work to see that it was all in her name and that the transaction zeroes out. The sales I typically handle are clearly personal residences or business property, so this inherited condo twist had me second guessing for a minute.

[TAXNJ]

Why would you NOT report this. What do you have to gain by not reporting it?? Lower prep fees? Whats to lose? IRS audit?

Form or not, you know they have an obligation to report it, its on YOU if you dont report it at this point.

As well, was the Gift tax return filed to establish basis?

Chris

Wow. What are your comments based on? The Poster is asking a fair question like you have in the past and deserves replies that are respective as you would.

[spanel]

Wow. What are your comments based on? The Poster is asking a fair question like you have in the past and deserves replies that are respective as you would.

What exactly was wrong with what I posted?

He asked is there a reason NOT to include it. I gave him several reasons otherwise.

If someone walked in your office and said I made $10,000 self employment income, but no 1099M. Would we not have the same response if the OP was to ask do we need to report this???

Chris

[TAXNJ]

What exactly was wrong with what I posted?

He asked is there a reason NOT to include it. I gave him several reasons otherwise.

If someone walked in your office and said I made $10,000 self employment income, but no 1099M. Would we not have the same response if the OP was to ask do we need to report this???

Chris

No. Not with your type of reply comments

[spanel]

No. Not with your type of reply comments