Entering 1099-S in ProConnect with wrong amount proceeds!

[HROS0907]

My client received a 1099-S in box 2 is gross proceeds of $100,000.00 which they did not get it was split between four siblings. how can this be entered?

[greg7 · Accepted solution]

If the person did not receive the 100k, then request a corrected 1099. 

If the person did receive the 100k and then sent portions of that money to their siblings, then those portions are likely considered a gift and should be reported as such on the return.  (except if the person was bequeathed the real estate and is carrying out the transfer of property to other heirs, in which case it is allowed to have temporary control without reporting as a gift).

[HROS0907]

Thank you this was very helpful!

[greg7]

I'm going through some training and this topic just came up.  If you can't get a new 1099, then report the full amount on the return and then deduct the portions reported that should have been reported to others.  

[TaxGuyBill]

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@greg7 wrote:

If you can't get a new 1099, then report the full amount on the return and then deduct the portions reported that should have been reported to others.  

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If 1099-S is wrong and the others owned the property, yes, that is that way to do it.  But if your client owned the property that was sold and then gave gifts to the others, no, you can't arbitrarily allocate income to others.

[IRonMaN]

Inherited property?  If so was there any real gain to report by the time you factor a step up in basis and closing costs?