Discussion:We are selling our apartment, 2 names on the deed, but proceeds go to one of us only. Can we put 0 gain on 1099-s for the one who is not getting 0 proceeds?

Hi, this is a 1099-S form question: We are selling our apartment and there are 2 names on the deed. One of us paid cash for the place and used it as his primary residence. The other person (me) maintains a separate primary residence.

The proceeds of the sale will go to the one who paid for the apartment. But our closing lawyer insists that he is obligated to split the proceeds in two and report on each person’s 1099-S.

I do not want to be tax liable, because I am not really getting any money, and the other person isn’t paying tax, since he’s been using the place as his primary residence for over 2 years.

Question: Can the closing lawyer put “0” on my 1099-S and issue the full amount of the proceeds to the other person?

Appreciate your advice,

Arthur

Otherwise, if the lawyer insists, then take the 1099 as prepared, and on YOUR return, report the entire amount, and then on the next line, back out the entire amount, with a description of "Less amount reported on SSN # ... return." As long as there is no 1099 mismatch, and as long as the entire proceeds are picked up, it may just fly.

I believe we are "tenants in common" with the right of survival (I may not be exact on terminology). That was a way for my partner to purchase his condominium in FL and make sure that if something happens to him, the property wouldn’t be lost to the state, etc. He paid cash and has been using it as his primary residence that he homesteaded for over 3 years. I own my apartment that's my primary residence. Now, when he's selling his place at a profit, he wants to take advantage of the tax free capital gains provision on the whole amount of the proceeds which should go to him 100%. But the closing lawyer insists on filling 50% proceeds on 1099-S for each of us. How can I declare (sign…) 1099-S with half of the proceeds if the money go to my partner?

Confusing, eh?