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Around the middle of last year, I sold a vacant lot I owned to a Texas oil company. (They had offered to buy mineral rights; as I'd been trying to get rid of this property for years, I suggested an outright sale instead.) I signed a warranty deed, they sent me a check, everything seemed to be fine.

Until now, when I received a tax statement from them, listing the $1865 sale price - on a Form 1099-MISC, under Rents (box 1). I can't imagine why they would characterize it that way (and I'm pretty sure a 1099 isn't how a land sale is supposed to be reported in the first place).

I've tried to contact them to get this straightened out, with little luck so far - I don't trust that anything will be resolved before tax time. So my question is: would it be safe for me to file my taxes with this income listed in the wrong place? (I assume it would be taxed at the same rate either way.) Or do I need to wait (and file extensions if needed) until such time as they submit corrected documents to the IRS?

  • Does the county tax assessor still show you as the owner? – mkennedy Feb 15 '17 at 18:37
  • @mkennedy: Yes, it's still in my name. Their tardiness in recording the deed is the main factor in my assumption that they're not going to be able to do anything else in a timely manner. – jasonharper Feb 15 '17 at 19:07
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You have two questions:

Would it be safe for me to file my taxes with this income listed in the wrong place? (I assume it would be taxed at the same rate either way.) You can file your taxes, and then always file an amended tax return later.

Or do I need to wait (and file extensions if needed) until such time as they submit corrected documents to the IRS? You can fill out a form 4868 to request an extension. However, if you do owe taxes, you still need to pay that amount by the April deadline.

Either option, you have to fill out more paperwork and pay taxes if you owe them. I would consult a CPA for advice on both the tax return and whether or not the 1099-MISC is correct.

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