Tax Explorer
Level 4
‎06-18-2024 02:41 PM

Hi,

I have a corporation that will file a 2023 1120 tax return for the fiscal-period from 04/23-03/24. The corporation sold a rental property it owned on 01/24. Should the corporation report the sale on its 2023 tax return or 2024 tax return (when the 2024 1099-S would be issued)?

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sjrcpa
Level 15
‎06-18-2024 02:46 PM

A January 2024 sale is reported on the 4/1/2023 - 3/31/2024 tax return.

All 1099s are issued on a calendar year basis.


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Tax Explorer
Level 4
‎06-18-2024 03:03 PM

Yes, I agree as that approach would make the most sense. If a 1099-S was issued for the Calendar Year 2024, would you know if that would cause any issues when filing the 2024 fiscal-year tax return (for the period 04/01/2024 - 03/31/2023 tax return) next year?

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sjrcpa
Level 15
‎06-18-2024 03:55 PM

It shouldn't. Easily explained if it does. Also, 1099-S has a place for date of sale which is usually filled in.


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sjrcpa
Level 15
‎06-18-2024 03:57 PM

FYI - 1099-S is usually part of the closing documents. Client probably has it even if they don't know it.


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