What amount goes on Schedule D of 1099-S

[Sandy_Richardson]

My client was on a deed of a house with her Dad, stepmom, and sister. Dad died in February of 2021 and the house was sold in July of 2021. The Stepmom, sister, and my client split the gains three ways. My client's 1099-S shows her third of the gross sale price. Is this the amount I put on Schedule D, and then list a third of the costs also? Or, do I put the amount that is on the statement of sale that is equal to the net sale amount that includes the costs already?

[George4Tacks]

Start with the 1099S amount as the sales price. Indicate it is inherited property. Basis = value at time of death + costs of sale.

I suggest you start reading a few if the following IRS Publications:

Pub 17

Pub 544

just for starters

By the way, are you doing these returns as a paid professional? 

[Sandy_Richardson]

Thank you for your response. I will look at the publications. My client is a partial heir, so I was not sure how the costs factored in. I asked a CPA firm today, and they were not sure. So, I do appreciate the publications.

I am Silver Lining Tax Svs, LC, and I started my business this past January. Yes, I charge for tax return services. I have my PTIN and EFIN. 

Thanks again!

[George4Tacks]

"My client's 1099-S shows her third of the gross sale price. Is this the amount I put on Schedule D, and then list a third of the costs also?" YES!
Always start with the amount of any sale that is reported to IRS as the sales price whether 1099S or 1099B.

[PODW4444]

is anyone surprised that sch d     and the sale of principal residence is not listed elsewhere .. sch d is normal for brokerage acs and other capital investments ?

[George4Tacks]

For those that are surprised, sales of anything that are an asset go in the Dispositions  Screen. 

https://proconnect.intuit.com/support/en-us/help-article/form-8949/entering-sale-disposition-assets-...