1099-s

Forum|Forum|3 years ago
March 23, 2023
1 reply
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I sold a home my ex-husband and I bought in 2008. Both our names were on the deed, his was listed first. I moved out 4 years ago and continued to help him pay the mortgage (even paying it for him when he was sick and unemployed). I finally got him to move out and we closed on the sale this week. I was looking over the documents and the entire proceeds are listed on my 1099-S even though it was split 50/50 per the divorce decree. Due to my generosity and sacrifice I now have to take this a capital gain and he does not. Should I contact the title company and see if they can correct or re-issue the 1099-S with only my portion of the proceeds? I do not know if he received a 1099-S as well and if his has the full amount too.

Not A Product Question

HelenC12

No, you don't have to pay taxes on 100% of the gain. If you received Form 1099-S for amounts that actually belong to another person or entity, you are considered a nominee recipient.

Yes, you should ask the title company to correct the 1099-S. Also, find out if your ex-husband got a 1099-S because then you'll only report 50% of the sale.

If the title company won't correct the 1099-S or your ex-husband didn't get a 1099-S, you'll need to issue your ex-husband a 1099-S for his 50% share of the home.

File the new Form 1099-S with Form 1096 (this is a transmittal for the 1099-S) by mailing them to the Internal Revenue Service Center for your area.

On your ex-husband's Form 1099-S, list yourself as the payer and him as the recipient.
On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Form 1099-S to show the amount that the recipient has to file on their tax return.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: Click here to order forms or publications from the IRS.

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