Just found out I won’t be getting a 1099 so now what?
First of all, thanks for reading this post. Here is the long story made short.
#1 I purchased a half acre lot in 2012 for $15,000
#2 I teamed up with a builder and signed my property over to him, he then got a hard money loan from someone else to build a home.
#3 The home will be done and sold by December 23rd, just a few days from now.
#4 The hard money Leander has the first lien and I have the second lean that needs to be paid once house is sold.
#5 I am supposed to collect $41,000 for the sale of the property.
This is where I have a few questions.
I was hoping to receive payment in January in order to pay taxes on the increase next year, since I have already sold a house this year and was the buyers Realtor on two other homes. I asked an accountant and was told that it depends on when the 1099 is issued.
Come to find out, I won’t be getting a 1099. The way I understand it, when I signed the property over to the builder, he became the owner and I don’t own the property any more. So, when the house sells on December 23rd, I won’t get a 1099, because the property is not being sold, because I can’t sell what isn’t mine. Does that make sense?
#1 So, when I receive payment, how is that recorded since I won’t be receiving a 1099?
#2 would it now be possible to delay payment from title company until January 1st because no 1099 will be issued or will a the closing date of the home be when it has to be claimed?
#3 what form will have to be used on taxes?
Your help would be appreciated. Thanks!