This is sort of a follow-up to my earlier post about when a RE transaction should be reported.
I talked to the closing agent about the missing
1099-S and they sent me another copy of the HUD-1. When I called to complain again about the lack of a 1099-S, they pointed out the tiny, fine print at the bottom of the HUD-1 that said it was also a substitute 1099-S (they also said they were reporting it as a 2012 sale).
I should note that this was a joint sale by my brother and I (we co-inherited the land) to a single seller. At the bottom of the HUD-1 are each of our signatures with each of our SSNs handwritten (by us) under our names.
I then looked up a (blank) real 1099-S on the IRS website and have some questions about how to "map" the HUD-1 to what should have been reported on a real 1099-S.
I see that the only box on the real 1099-S relating to sales proceeds is Box 1 "Gross Proceeds".
The HUD-1 has "gross amount due to seller" and then subtracts off commissions and real estate tax adjustments. Is the "gross amount due to seller" what would have gone on a real 1099-S and what I report as proceeds on Form 8949? (And then add commissions to the basis?)
Another question is who is this going to be reported for? The real 1099-S only takes a single SSN.
Should I expect that the closing agent will send two 1099-S's to the IRS (one under each SSN) each showing half the proceeds? Is that common practice? Should I be prepared for them to arbitrarily pick one person and report all the proceeds under that person's SSN? And if they do that, what the person who gets the whole proceeds reported against them do? File a nominee 1099-S to get the half the proceeds over to the other? Just report their share and wait for the CP-2000 to arrive?
My return is on extension (so I have some time) -- is it possible to contact the IRS and find out from them what the closing agent reported under my SSN?
(BTW, I have tried asking the agent these questions and all I can get out of them is "we reported what's on that form to the IRS" with no specifics at all. Grrr!)
Thanks!