Tax questions

February 23, 2000

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

The settlement date for the sale of a lot was Dec. 21, 1999. The buyer paid half the amount due in December, and the second half in January. The attorney handling the sale sent a Form 1099 with the entire amount listed. Shouldn't there be two 1099 forms to avoid paying all the taxes with the 1999 return?

There should be only one Form 1099, which should show the total sales price of the lot. What you are allowed to do is report the sale on Form 6252 Installment Sale Income, which will allow you to correctly report the first portion of the sales price paid during 1999 on your 1999 Form 1040, and then report the second portion of the sales price paid during 2000 on next year's Form 1040.

Aaron Bloom, CPA

Ribis, Jones & Maresca,

Columbia

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a touch-tone phone, punch in the four-digit code 6225 after the greeting.

You can also submit questions by e-mail through The Sun's Web site, www.sunspot.net. Click on Business. Selected questions will be answered in the Business section. No questions will be answered personally.

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