Where do I enter amounts from Form 1099-S?

Solution:

Reportable Real Estate

Generally, you are required to report a transaction that consists in whole or in part of the sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in any of the following:
  1. Improved or unimproved land, including air space.
  2. Inherently permanent structures, including any residential, commercial, or industrial building.
  3. A condominium unit and its appurtenant fixtures and common elements, including land.
  4. Stock in a cooperative housing corporation (as defined in section 216).
  5. Any non-contingent interest in standing timber.
 

Sale or exchange

A sale or exchange includes any transaction properly treated as a sale or exchange for federal income tax purposes, even if the transaction is not currently taxable. For example, a sale of a main home may be a reportable sale even though the transferor may be entitled to exclude the gain under section 121. Also, a transfer to a corporation that qualifies for nonrecognition of gain under section 351 is a reportable exchange. In addition, a transfer under a land contract is reportable in the year in which the parties enter into the contract.
 
  • Box 2 - Shows the gross proceeds from a real estate transaction, generally the sales price. Gross proceeds include cash and notes payable to you, notes assumed by the transferee (buyer), and any notes paid off at settlement. Box 2 does not include the value of other property or services you received or will receive. See Box 4.
  • Box 3 - Shows the address or legal description of the property transferred.
  • Box 4 - If marked, shows that you received or will receive services or property (other than cash or notes) as part of the consideration for the property transferred. The value of any services or property (other than cash or notes) is not included in box 2.
  • Box 5 - Shows certain real estate tax on a residence charged to the buyer at settlement. If you have already paid the real estate tax for the period that includes the sale date, subtract the amount in box 5 from the amount already paid to determine your deductible real estate tax. But if you have already deducted the real estate tax in a prior year, generally report this amount as income on the "Other income" line of the appropriate income tax form. For more information, see Pub. 523, Pub. 525, and Pub. 530.
 

To report a sale of home from Form 1099-S

 

To report real estate that was not the main home per the 1099-S instructions:

 
Note: If the real estate is entered on the Depreciation screen and the method selected is 70, 71, 80, 81, 82, 83, 85, 87, or 89 (real estate), Lacerte assumes the asset is a Form 1099-S transaction and automatically reports the gross proceeds from the sale on Form 4797, line 1. Lacerte assumes all other methods to be non-real estate assets whose gross proceeds are not reported on Form 4797, line 1.

 

Follow these steps to override Lacerte's assumption:

  1. Go to Screen 22, Depreciation.
  2. Scroll down to the Sale of Asset (4797/6252) section.
  3. Enter a '1' or '2' in, Form 1099-S transaction: 1= no, 2= yes [O].


Buyer's part of Real Estate Tax (box 5)

See the instructions for Schedule A, line 6, on page A-5.


For Timber/Lumber Sales reported on Form 1099-S

You may wish to see the following: