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Question

who creates 1099 for lost earnest money on investment property to seller

Forum|Forum|2 years ago
January 30, 2024
2 replies
0 views

I have lost my earnest money on an investment house. Who creates the 1099 to be mailed to the seller? If the buyer that lost the earnest money does, which 1099 should be used?

TurboTax Live Self-Employed Online

Form 1099-S would be filed for real estate transactions. The individual or company that is responsible for processing the closure on the property is the one who is responsible for issuing the form 1099-S, unless there is a written agreement as to who else is responsible for it. You can read more in the instructions to form 1099-S here: Form 1099-S

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Employee

In the situation you describe, there is basically nobody who is required to create a form 1099. You file your taxes based on your own records.

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)

- Wages & Income

Scroll down to:

-Investment Income

-Stocks, mutual funds, Bonds, Other (Real estate is other)

Answer no, when asked if you got a 1099-B. then follow the interview. When asked if used for business or rental, check "other investment purpose"