Different expert here - my name is ***** ***** I have a different answer.
Since your mother-in-law sold her personal residence, the title company was correct in issuing the 1099-S with Box 2 blank. This alerts the IRS
that the property
that was sold DOES NOT have to be reported on Form 8949 and Schedule D
because there is nothing (no amount in Box 2) to report.
The issue is with the amount in box 5-real estate taxes
, which shows certain real estate tax on a residence charged to the buyer at closing. If your mother-in-law already paid the real estate tax for the period that included the sale date, she would subtract the amount in Box 5 from the amount already paid to determine her deductible
real estate tax. But if she has already deducted the real estate tax in a prior year, the amount in Box 5 would be reported as income on the "Other Income
" line of the appropriate income tax form. On Form 1040
, it is Line 21.
Please let me know if you require further information or clarification.
Thank you and best regards,