client purchased a home with a partner to flip. The purchase was reported on 1065 along with the costs of renovations and subsequent sale. K-1's were issued to each partner. One partner reached out after the fact to say he received a 1099S with his social security number.
How does he report to the IRS that the proceeds were already reported on 1065 and his share is on the K-1?
Thanks.
I would wait until IRS asked. They aren't going to read any attachment to his 1040, and why would they believe it anyway?
I doubt with budget cuts they're going to do 100% matching of 1099-S forms, anyway. But we'll find out.
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