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March 25, 2022
Question

CAN YOU AVOID 1099-NEC REPORTING

  • March 25, 2022
  • 1 reply
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NOT A WORKER OR CONTRACTOR.  IT CAME FROM LIQUIDATION OF A TIME SHARE INTEREST

1 reply

ColeenD3
March 25, 2022

Yes, you have to claim the income but not on Schedule C. You will have to include it on Schedule D.  This is a capital asset and since it is personal use, if there is a loss, you can't claim it.

 

The best thing to do is ask for a corrected form. 

 

To enter the sale:

 

  1. Click on “Wages & Income
  2. Scroll down the screen until to come to the section “Investment Income”
  3. Choose  Other as this is not the sale of stock and select “start"
  4. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
  5. Since you did not receive a 1099-B, answer “no” to the 1099-B question
  6. Choose type of investment you sold - select Second Home
  7. Description –  Usually the basic timeshare information