Question

1099-S and Divorce

Forum|Forum|1 year ago
February 23, 2025
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I received a 1099-S for the sale of my home because I was listed as the sole owner on property records. Per divorce settlement everything was to be split 55/45. I paid my ex-husband his 45% share of the proceeds. Do I need to file a 1099-S showing the gross amount of his cut that I paid him? Do I then still file using the original 1099-S in my name only for full the amount of home sale or do I adjust that amount by 55% on form 8949?
And, do I continue using the 55/45 split on cost basis too?

Not A Product Question

M

MAK70

Generally, the person responsible for closing the transaction sends the 1099-S. If you were on the closing agent you do not send a 1099-S. I would report all of the 1099-S proceeds to avoid an IRS automated underreported notice, and adjust the basis so you are taxed on only your 55% share. (You would increase the basis by the 45% of the proceeds he received).