It does seem like a 1099-S should have been filed. I would flip through your closing paperwork just to verify there isn't one stuck in there.I sold a property in 2025 that I had inherited 10 years ago. The property had been in a revocable trust at the time of death (when the trust became irrevocable of course), and very shortly after death, as the beneficiary/trustee I retitled it in my name. That was done by an attorney so I believe it was handled properly.
There was no real estate agent or attorneys or mortgage providers involved in the 2025 sale. The title company said it won't be providing a 1099-S although I'm not sure why as they understand that it's not a primary residence. Of course I have the closing statement.
At the time I inherited the property I had it appraised at $110,000 and have those records. Using round numbers for convenience, I sold the property "as-is" for $90,000 due to extensive damage. At the closing $3000 was deducted from my proceeds due to taxes the new owner will have to pay; $1000 was added for HOA fees I had prepaid. So I received $88,000 cash. The property was never business or rental property so any loss isn't deductible.
How should I report the sale on my taxes for 2025?
What was the property used for for 10 years? If it was left empty, I believe you can still take a loss on the sale. (There's a discussion here: viewtopic.php?t=345115). The important thing is that it was not used for personal use.
Personally, I would report the sale on form 8949 regardless of whether a 1099-S was included. You enter the basis ($110,000) and sale price ($90,000) in the respective columns, and if you are going to deduct the loss, you would enter code E and subtract out your selling expenses. If you are not going to deduct the loss, enter code L and then $20,000 as the adjustment in order to zero out the loss.
Statistics: Posted by toddthebod — Wed Nov 05, 2025 10:05 pm — Replies 9 — Views 374