Question

Received 1099-S but no Income to Report

Forum|Forum|4 years ago
April 4, 2022
1 reply
0 views

My Uncle and I received a 1099-S form from a sale of my grandfather's property. He passed away in 2015 and the property has been unoccupied since then. My uncle and I were the only heirs. On paper, there are gross proceeds, but the property sold only for the amount of closing cost and back taxes that were owed so we did not receive any actual money from the sale ($17,500). Would the fair market value be the same as the gross proceeds because we did not receive any funds?

P

PattiF

Yes, the fair market value (and cost basis) would be the same as the proceeds. That will zero the income from the 1099-S out so that no money is owed.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"