Form 1099-S (2024)

FAQs

What is the 1099-S form used for? ›

More In Forms and Instructions

Use Form 1099-S to report the sale or exchange of real estate.

Form 1099-S reports the date of sale and the gross proceeds of the transaction, and it has been sent to the IRS, so a taxpayer who has received one must report it on their tax return.

When you sell your home, federal tax law requires lenders or real estate agents to file a Form 1099-S, Proceeds from Real Estate Transactions, with the IRS and send you a copy if you do not meet IRS requirements for excluding the taxable gain from the sale on your income tax return.

To order official IRS information returns, which include a scannable Copy A for filing with the IRS and all other applicable copies of the form, visit www.IRS.gov/orderforms.

Generally, the person responsible for “closing” a reportable transaction is required to file Form 1099-S. However, determining who is responsible for “closing” the transaction can differ depending on the specific facts of the transaction.

Any payments made to corporations are exempted from sending form 1099-MISC or any other types. The exemption also includes payments to LLCs and partnerships that choose to be treated as S or C corporations.

Upon selling an inherited asset, if the inherited property produces a gain, you must report it as income on your federal income tax return as a beneficiary.

Your share of sales proceeds (generally reported on Form 1099-S Proceeds From Real Estate Transactions) from the sale of an inherited home should be reported on Schedule D (Form 1040) Capital Gains and Losses in the Investment Income section of TaxAct.

Instead of coming in the mail next January, like most 1099 forms, the 1099-S is usually included in your closing documents. If you didn't get one at closing, you probably will not be getting one. It may be labeled “Substitute form 1099-S”. So check your closing documents!

Do I have to report to the IRS that I sold my house? ›

Reporting the sale

Additionally, you must report the sale of the home if you can't exclude all of your capital gain from income. Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets when required to report the home sale.

§ 1.60501-1 (c)(7)(i). Therefore, whether a mobile-home sale is treated as a sale of realty or of personal property, the sale must be reported on Form 8300 if more than $10,000 in cash is exchanged.

For taxpayers who did not receive a Form 1099-S, use sale documents and other records. If the taxpayer can exclude the entire gain from a sale, the person responsible for closing the sale (for example, a real estate broker or settlement agent) generally will not have to report it on Form 1099-S.

If you completed a real estate transaction with Land Title Guarantee Company, your closer will help with the paperwork during the closing process, we will submit it on your behalf and you will receive a 1099-S the following January.

If you are looking for 1099s from earlier years, you can contact the IRS and order a “wage and income transcript”.

If you've had any involvement with buying or selling property during the tax period, you'll either issue or receive a 1099-S. Federal tax law requires that lenders or real estate agents file this form in the event of these occurrences: The sale of your primary residence, timeshare, or vacation home.

If you made a payment of $600 or more on behalf of your business, you are required to file Form 1099.

You'll need your 1099 to accurately report your income on your tax return. Remember that a copy of this form is also sent to the IRS, so you can be sure the agency knows about this income. However, simply receiving a 1099 tax form doesn't necessarily mean you owe taxes on that money.

If you work as an independent contractor or freelancer, you'll likely have income reported on a 1099 form. You should receive most of your 1099 forms by January 31 each year to report the preceding year's payments to you.