1099S & IRS Form 8949

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Stu707 13 years ago

I am a California resident and sold an inherited residence in 2012.

I received form 1099S that indicates the gross price I received but no indication of expense items related to sale (real estate commission, escrow fees, local transfer taxes, etc) that are reflected in the closing escrow statement and deducted from the gross amount listed on 1099S Can I sum the total of the charges and enter them on Form 8949, column g?

The closing escrow statement lists a deduction from gross sales for "Franchise Tax Board Withholding 3.333%." However, there is no indication on 1099S or other statement of this withheld amount. How do I show that on my Federal and California returns.

Thanks in advance for any assistance.

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remove ps 13 years ago

Per the instructions for form 8949 at

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if the gross proceeds on 1099-S does not reflect selling fees then write E in column (f), and the fees in column (g). These would be the agent fee, usually 5% of the home value. Maybe other fees are included too, I don't know. It seems one should include transfer tax paid when selling the home here too.

The cost basis is the value of the house when you inherited it, plus additions since that time, plus other stuff described in publication

551 chapter 2 such as transfer taxes and recording fees and owner's title insurance you paid when you inherited the home, minus energy and other tax credits on the home since you inherited it.

Do not include the tax withheld. Instead, report it on your CA 540 line 73 "Real estate and other withholding". And report it on your federal Schedule A as tax paid, so that you get a big deduction on your federal return (you might end up in AMT).

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D. Stussy 13 years ago

Per the instructions for form 8949 at

formatting link

if the gross proceeds on 1099-S does not reflect selling fees then write E in column (f), and the fees in column (g). These would be the agent fee, usually 5% of the home value. Maybe other fees are included too, I don't know. It seems one should include transfer tax paid when selling the home here too. [...] ============ In California, the standard agent fee is 6% (3% for the buyer's agent and 3% for the seller's agent if they are different people).

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1099S & IRS Form 8949

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