Taxes on Flip in Partnership

[Todd Plambeck]

A friend and I own 7 rental properties.  I've done 5 flips in the past on my own.  Last year we did a flip on a house through the partnership and I'm confused about the taxes.  Round numbers for sake of example:

Purchase : 200,000 cash, 100k each

Rehab and expenses: 70k

Sold: 300k 

Proceeds:  15k each

I get a 1099 from the title company for 150k and I got my K-1 from my accountant saying I made 15k profit.  Shouldn't the K-1 say a 135k loss to offset the 150k on the 1099?  He says it's correct and I'm confused.  I'd like to finish my personal return to get my refund but can't like this.  Am I missing something obvious here?

[Eamonn McElroy]

If the 1099-S lists your SSN, you're going to get a matching error notice from the IRS.

The best way to handle this is to report the 1099-S on your 1040 as a nominee and issue a 1099-S from yourself to the partnership.  Your tax professional should be familiar with this process and able to advise you.