1099-s

[peggysioux]

Taxpayer received a 1099-S showing his SS # and gross proceeds of $78,333.33. When I asked for details of the sale of this property, I was advised that it was from a partnership. But when I reviewed the K-1 from the partnership, the only data on the K-1 is from net expenses of $2,344 show K-1 shows loss of $2,344.

Two questions - if the property was an asset of the partnership, wouldn't the 1099-S show the partnership's ID # rather than the taxpayers? Are there some exceptions to this? Secondly, wouldn't there be other fields in the K-1 showing data, such as 9C - unrecaptured section 1250 gain being it was rental property that would have been depreciated?

Thank you for your input!!!

Peg

[Bees Knees]

If the partnership owned the property, the partner should not receive a 1099-S. The 1099-S goes to the partnership, and the partnership in turn calculates gain or loss on the transaction which flows through to the partner on the K-1.

Either the taxpayer owned the property and not through the partnership, thus receiving a 1099-S, or the closing company or person handling the real estate sale incorrectly issued a 1099-S to the taxpayer. You need to question the taxpayer some more.

[Bees Knees]

Some additional information from the instructions for Form 1099-S:

The IRS instructions say the following:

For each transaction, be sure that only one person is
responsible for filing and that only one Form 1099-S
is filed for each transferor.

Employees, Agents, and Partners
If an employee, agent, or partner, acting within the scope of
such person’s employment, agency, or partnership,
participates in a real estate transaction, only the employer,
principal, or partnership (not the employee, agent, or
partner) may be the reporting person. However, the
participation of a person listed on the Uniform Settlement
Statement as the settlement agent acting as an agent of
another is not attributed to the principal.

Partnerships. If the property is transferred by a
partnership, file only one Form 1099-S for the partnership,
not separate Forms 1099-S for each partner.