form 8949, selling vacation property, improvements.?

Question

I have several questions with this form,

1) I am 1/3 owner of the property and the 1099-S shows the full price, Am I supposed to divide it by 3 as with the other items on the form?

2) I'll assume I'm supposed to divide everything by 3.   now my share of the proceeds, line 3, column D,  is 1/3 of the $180,000 so its 60,000 correct?

3) line 3E, the cost basis is the 1/3 I paid for the house, 15,000.   correct?

4) now comes the part I can't figure out, over the 25 years we have owned the property, we have redone everything so the receipts add up to 75,000, so I get to put down ($25,000) in column g, as well as 1/3 the realtors fee, (12,000/3==4000) in column G.  correct?  and what are the codes I'm supposed to put for these deductions?  I couldn't figure it out fromthe instructions.

TIA,

tro · Accepted Answer

if this was only your vacation home never rented it out  you would merely use Sch C
the 8949 does not relate to this kind of asset sale
a 4797 would apply to an asset you  depreciated
and yes, you can use expenses of sale, improvements you made withing 90 days of sale from the sale price, which will be 1/3rd yours
work with the other two as to how you determine what you make on it

NA · Answer

The IRS changed their approach.  You follow the instructions for the form 8949 and use code N to adjust the total.

Either that or you go back to the real estate people and ask them to reissue the 1099-S for 1/3rd each like they were supposed to.

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form 8949, selling vacation property, improvements.?

2 Answers