Okay this is a family estate situation. One family member is buying farmland from the others for 200K. However, they are only going to pay 120K until they sell other property and will then supply 80K. Should the 1099 we complete state 200K or 120K? This may be a simple question but it has really tripped me up.

Box 2. Gross Proceeds

Enter the gross proceeds from the sale or exchange of real estate. Gross proceeds means any cash received or to be received for the real property by or on behalf of the transferor, including the stated principal amount of a note payable to or for the benefit of the transferor and including a note or mortgage paid off at settlement. If the transferee assumes a liability of the transferor or takes the property subject to a liability, such liability is treated as cash and is includible as part of gross proceeds. For a contingent payment transaction, include the maximum determinable proceeds. Also see Multiple Assets Sold on page 3.


I would go with the $200K.