FORM 1099-S

[Edward]

Have client that inherited farm land (50/50) with sister. Settlement Stmt (HUD-1) shows both as sellers but the 1099-S has only his name with total gross sales 240,000. In looking at 2010 edition (Bookleto5) HOW TO PREARE 1099'S, pages 109 to 111 I can not seem to find any references to the "splitting" of Gross Sales price. Both will report their share (120,000) however. Is there a way for me to add a comment regarding the allocation before efiling? Any comments will be apprecicated. Thanks

[Lion EA]

One way is to report the $240,000 on his Schedule D and then report (120,000) on the next line. Depending on the space available in your software, say something like

reported by other beneficiary, Name, SSN

[Edward]

Sorry but I goofed in failing to read a "NOTE" sentence of the instructions which read: FOR MULTIPLE TRANSFERORS: You must file a separate Form 1099-S for each transferor". So problem solved. Thanks.

[Lion EA]

Sorry, are you filing the Forms 1099-S for your client the seller? Or, did your cient receive a Form 1099-S and you're e-filing his personal return?

[Edward]

I received the 1099-S from my client and the people that handled the closing (HUD-1) gave my client the 1099-S but the single 1099-S reflected the TOTAL of both (240,000), when it should have been split between the two transferors. I contacted the closing company and they are going to send corrected 1099-S's to show the split. Yes, I will be efiling the clients return.

[Jack from Ohio]

Be sure your client's replacement 1099-S is marked and submitted by the closing company as "CORRECTED" or be prepared to deal with a CP2000 in a year or so.