1099-S To Report 401k Property Sale

3 Replies

Hello BP friends,

I have a business (s-corp) that has been sponsoring for many years a SOLO 401k Plan. The business and the plan each have their own EIN. As a plan trustee, I am selling a rental property owned by the plan, and will deposit the sale proceeds back into the plan. The title company is asking me to fill out the 1099-S to report this property sale, but I am not sure which EIN to write on that form: of the employer (plan sponsor) or of the tax exempt plan?

Every year I file an annual 5500EZ form for the 401k plan, on which I write the EIN of the business (plan sponsor), not of the plan itself, because that's what the instructions clearly indicate. However, this is the first time I prepare a 1099-S form for a 401k plan but I do not see a clear instruction on which EIN to indicate for a 401k plan scenario.

Any help is highly appreciated. Thanks in advance.

@Mark H.

You are correct that for purposes of the 5500-EZ, the IRS is looking for the tax ID of the Plan Sponsor (your S-Corp).

When the plan itself is transacting, such as selling a property, the plan EIN should be used. This way the IRS will receive the 1099-S and identify the transaction as occurring within the tax-sheltered plan.