[plv]

This is a rather complicated question. My husband received a 1/5 share of 1/3 of family property. The property sold for $187,500 and a 1099 was issued for each of the 10 heirs for that amount. Did not received anything showing his exact share of the sales. I am at a loss how to fill out Schedule D. I know it is long term capital gains and column (b) is filled out with "inherited" I assume since the 1099 was for the full amount, that is the amt shown in colun (d). Not sure of the value of property at the time of his mother's death in 1989, but, I assume that is listed in column (e). Can the other 9 people's shares and selling costs be added in here? She was the last living heir of the 3 original heirs. His share was for $12,444 (1/5 of 1/3) . How and where would his share of this be shown on Schedule D. What should column (f) reflect? Where is his $12,444 shown on the tax forms? I don't have time for a tax preparer to do this for us and do need an answer ASAP. Thank you.

[AtlantaTaxExpert]

If the property sold for $187,500 split equally between ten heirs, the 1099 SHOULD have shown $18,750. To fix this problem, a corrected Form 1099 needs to be issued. Until that is done, you cannot accurately finish the Schedule D, because your figures will NOT match the Form 1099, causing the IRS to audit your return and ask why the figures do not match.

BOTTOM LINE: Get the 1099 re-issued with the correct sales figure. THEN file the return.

I recommend you file an extension and make a payment with the extension to cover any potential tax liability. THEN get professional help.