What is Form 1099-S?
Form 1099-S is a part of the 1099 series. It is used to report various non-payroll payments. Like the sale or exchange of real estate, including land, buildings, condos, and even certain types of timber. It helps the IRS track the proceeds from these transactions, making sure everything is reported correctly.
Who Needs to File Form 1099-S?
Generally, the person handling the closing—like the settlement agent, title company, or real estate attorney—is in charge of filing Form 1099-S. If no one’s handling the closing, the responsibility may fall on the seller. Even if your transaction is exempt, you might still need to file the form.
Key Information to Report on Form 1099-S
Key information includes but is not limited to the closing date of the transaction, the gross proceeds, and the address of the property. To complete Form 1099-S, be sure to include the following key details:
• Transferor and Transferee Details: List the names, addresses, and taxpayer identification numbers (TINs) for both the seller (transferor) and the buyer (transferee).
• Property Details: Describe the property, including its address and legal information.
• Transaction Information: Include the date of sale, the total proceeds from the transaction, and any applicable real estate taxes.
Exceptions from Reporting
Certain transactions may be exempt from reporting on Form 1099-S, such as:
• Sale of a Principal Residence: If the seller certifies that the property sold was their principal residence and the gain is excludable under section 121, reporting may not be required.
• Certain Sales by Financial Institutions: Sales involving financial institutions may be exempt.
• Sales of Certain Manufactured Structures: Sales of manufactured structures used as dwellings that are not affixed to a foundation may be exempt.
What is the deadline to file Form 1099-S?
The Form 1099-S deadline to file with the IRS is no later than March 31, 2025, for the 2024 tax year. In addition to filing with the IRS, a recipient copy must be provided to the transferors. The deadline to distribute copies of Form 1099-S is February 18, 2025.