Question

1099-S for sale of house held in IRA

Forum|Forum|2 years ago
April 1, 2024
2 replies
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I bought a house within my self-directed IRA in 2012. I followed all the rules and the rent went straight into the IRA, property taxes, property management, insurance costs were paid by the IRA. I sold the house in 2023 and was given a 1099-S for from the closing escrow company. What do I do with this 1099-S form in turbotax? the area for selling investment property specifically says it doesn't include houses held within an IRA. The only other place I can find to put this form is in the area for sale of a house I lived in, but I never lived in it.

I don't think I owe taxes on this 1099-S money because the house was held in theIRA and the sales proceeds went to the IRA. But what the heck do I do with this random form with hundreds of thousands of dollars that I'm sure the IRS will be curious about since it has my name and social security number on it and says nothing about an IRA?

Thanks

M

mglauner

Just keep the 1099S with the tax records as it does not get reported on the tax return.

Anything that takes place within the retirement account does not impact the return. If IRS does ask, you will simply let them know that this was inside the IRA and does not go on the individual return.

However, the issuer of the 1099-S should have requested the EIN for the IRA and used that on the 1099-S.

Here's more info on Sale of IRA Property.

M

Mike9241

I would see if they'll issue a corrected 1099 with the iRA ein. this is so hopefully you'll avoid a notice from the IRS which is almost certain to occur because the 1099 has your SSN and isn't being reported on your return