Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Author: filson85 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120780  
Subject: 1099 - S Date: 4/8/2007 10:14 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi,

I sold a lot (real estate) and received a 1099 - S. The Gross prcoceeds in Box 2 was the purchase/sales price.

I am using Taxcut.

Does this get reported on Schedule D?

Do I use the gross proceeds from box 2 as the gross proceeds on Sch D?

Do I then subtract the net proceeds from the gross proceeds and add it to the cost basis?

(1) Initial cost - $17,167.53
(2) Gross proceeds - $28,500.00 (Box 2 1099 -S)
(3) Commissions, fees, etc - $4,213.57
(4) Real estate tax $52.46 (Box 5 1099 - S)
(5) Sales tax $1,425.00 (HI Sales tax)
(6) Net proceeds - $22,808.97

The Real Estate tax (4) and the Sales Tax (5) don't get added to the cost basis?

On Sch D -
Gross proceeds - $28,500
Cost basis (1) + (3) = 17,167.53 + 4,213.57 = $21,381.10

Net gain of $7,118.90

Thank you for any assisstance.





Print the post Back To Top
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93769 of 120780
Subject: Re: 1099 - S Date: 4/8/2007 10:47 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
I sold a lot (real estate) and received a 1099 - S. The Gross prcoceeds in Box 2 was the purchase/sales price.

I am using Taxcut.

Does this get reported on Schedule D?


Yes. Either line 1 or line 8, depending on your holding period.

Do I use the gross proceeds from box 2 as the gross proceeds on Sch D?

Yes.

Do I then subtract the net proceeds from the gross proceeds and add it to the cost basis?

No. You add the expenses of sale to your basis. Gross proceeds minus net proceeds does not necessarily equal expenses of sale. You have to examine your closing documents.

(3) Commissions, fees, etc - $4,213.57

Expense of sale

(4) Real estate tax $52.46 (Box 5 1099 - S)

Not an expense of sale. If you gave the buyer money for accrued but unpaid real estate taxes, it's a Schedule A deduction for you. If the buyer gave you money for prepaid real estate taxes it either reduces your Schedule A deduction or is additional income, depending on whether you've already deducted the taxes. (There's an explanation of this on the back of your copy of the standard 1099-S.)

(5) Sales tax $1,425.00 (HI Sales tax)

Need more information. Ordinary sales tax is paid by the purchaser, not the seller. What exactly is the nature of this charge?

Phil

Print the post Back To Top
Author: filson85 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93770 of 120780
Subject: Re: 1099 - S Date: 4/8/2007 11:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Phil,

Thanks for your help.

The tax is an income tax on the sales of property - not a "sales tax"

This was a lot in HI. They charge Non-resident sellers a 5% state income tax on the sales of property in HI. They call it a:
HARPTA payment to Hawaii State Tax Collector.

Then we get the joy of filing a Non-resident income tax return (N-15) to HI.

Thanks again Phil.



Print the post Back To Top
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93771 of 120780
Subject: Re: 1099 - S Date: 4/8/2007 11:08 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
The tax is an income tax on the sales of property - not a "sales tax"

This was a lot in HI. They charge Non-resident sellers a 5% state income tax on the sales of property in HI. They call it a:
HARPTA payment to Hawaii State Tax Collector.

Then we get the joy of filing a Non-resident income tax return (N-15) to HI.


It's a Schedule A itemized deduction for state/local income taxes, just the same as state tax withheld from a paycheck during the year.

Phil

Print the post Back To Top
Author: filson85 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93772 of 120780
Subject: Re: 1099 - S Date: 4/8/2007 11:37 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Got it,

Thanks for your help Phil.

Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93794 of 120780
Subject: Re: 1099 - S Date: 4/9/2007 12:31 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
The tax is an income tax on the sales of property - not a "sales tax"

This was a lot in HI. They charge Non-resident sellers a 5% state income tax on the sales of property in HI. They call it a:
HARPTA payment to Hawaii State Tax Collector.

Then we get the joy of filing a Non-resident income tax return (N-15) to HI.


When you file your HI return, don't forget to claim this tax as a payment on your HI return. It's just like withholding from your paycheck. It's not the actual tax, just a prepayment to make sure you don't end up owing a ton of taxes and, in the case of non-residents, to make sure you file a return and settle up the tax bill.

--Peter

Print the post Back To Top
Author: filson85 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 93888 of 120780
Subject: Re: 1099 - S Date: 4/11/2007 7:13 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
When you file your HI return, don't forget to claim this tax as a payment on your HI return. It's just like withholding from your paycheck. It's not the actual tax, just a prepayment to make sure you don't end up owing a ton of taxes and, in the case of non-residents, to make sure you file a return and settle up the tax bill.

--Peter


Thanks Peter.

We did that and we are getting a refund from HI.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Next Thread
Advertisement