FORM 1099-S

Forum|Forum|6 years ago
March 9, 2020
9 replies
50 views

I received a FORM 1099-S -Proceeds From Real Estate Transactions- from a client. This is in reference to a house he bought and sold for profit(Not his personal residence). Any help on where to enter this in proseries including all expenses made?

Your help is appreciated.

Thanks

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

Thanks for your help on this issue.

The client's intent when they bought the house was to fix and flip it for profit. They never rented it out at all during the time they owned it. Also they plan to buy another house with proceeds from the earlier sale and flip again.

Sounds like Sch C, this can be quite complex if youre not familiar with it, be sure to do your research, Im sure theres tons of info out there about this.

Just-Lisa-Now-

Intuit Community Champion

Was this a one and done, or is he going to be buying and flipping houses on a regular basis?

If this was a one time thing, use Sch D.

If this is going to be an ongoing thing, you may be looking at a Sch C for business.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

R

rastewuAuthor

Level 3

What is the advantages or filing Schd C vs Schd D?. Also which section on Schedule C do you enter this information? I don't see anything like 1099-S.

qbteachmt

Level 15

It's not an issue of advantage for which form to use. It's an issue of Facts and Circumstances.

Sched C = they are going to be doing this as a business or side business.

Sched D = they did it once, such as bought a house for themselves, but got an offer and sold it instead of keeping it = investment.

And what you have is not Expenses, These costs are part of basis = invested in the property sold.

If you have ongoing operational expenses (not directly related to what they bought, improved, and sold), they likely are running a business = Sched C.

Don't yell at us; we're volunteers

R

rastewuAuthor

Level 3

Thanks so much for your help.

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