{"id":421,"date":"2020-09-16T11:00:04","date_gmt":"2020-09-16T11:00:04","guid":{"rendered":"https:\/\/www.tax1099.com\/blog\/?p=421"},"modified":"2025-10-16T07:02:06","modified_gmt":"2025-10-16T07:02:06","slug":"what-is-form-1099-s","status":"publish","type":"post","link":"https:\/\/www.tax1099.com\/blog\/what-is-form-1099-s\/","title":{"rendered":"What Is Form 1099-S?"},"content":{"rendered":"<p>What is Form 1099-S? It is used to report the sale or exchange of real estate transactions to the IRS.<\/p>\n<p><span class=\"TextRun SCXW248335173 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW248335173 BCX8\">Are you filing Form 1099-S for the first time? Or are you a seasoned filer who knows the ins and outs of the realm of real estate? Whatever the situation, <\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">in this blog, <\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">we have the low-down <\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">for you <\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">on this important tax <\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">form<\/span><span class=\"NormalTextRun SCXW248335173 BCX8\">.<\/span><\/span><\/p>\n<h2 aria-level=\"2\">What Is Form 1099-S?<\/h2>\n<p><span data-contrast=\"auto\">Basically, Form 1099-S is used to report gross proceeds from the sale or exchange of real property. The transactions could be residential, commercial, timber\/mineral rights, foreclosures, exchanges, or barter.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So, what&#8217;s the deal with Form 1099-S? The payer, who is usually the settlement agent or closing attorney, files this form to give the IRS the data it needs to match a seller\u2019s capital-gain reporting. With this form, the IRS can track who\u2019s moving what amount of money around in the property market.<\/span><\/p>\n<h3>Gross Proceeds vs. Taxable Gain<\/h3>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Form 1099-S gross proceeds box 2<\/span><\/b><span data-contrast=\"auto\">: This box shows the entire amount paid for the property, like cash at closing, notes, assumed debt, or any other consideration.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"13\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Taxable Gain: The seller figures this out later on their personal tax return. They subtract the property\u2019s original cost (basis), improvements, selling expenses, and any allowable exclusions from those gross proceeds.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Note<\/span><\/b><span data-contrast=\"auto\">: Every reportable real estate deal gets a Form 1099-S. There\u2019s no minimum dollar threshold.<\/span><\/p>\n<h2>Who Must File Form 1099-S?<\/h2>\n<p><span class=\"TextRun SCXW46936269 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW46936269 BCX8\">You could be selling your beach house or closing in on a big commercial complex. Someone <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW46936269 BCX8\">has to<\/span><span class=\"NormalTextRun SCXW46936269 BCX8\"> take charge of <\/span><\/span><span class=\"TextRun SCXW46936269 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW46936269 BCX8\">real estate proceeds reporting <\/span><\/span><span class=\"TextRun SCXW46936269 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW46936269 BCX8\">to the IRS. So, <\/span><\/span><span class=\"TextRun SCXW46936269 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW46936269 BCX8\">who files Form 1099-S<\/span><\/span><span class=\"TextRun SCXW46936269 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW46936269 BCX8\">?<\/span><\/span><span class=\"EOP SCXW46936269 BCX8\" data-ccp-props=\"{}\"><br \/>\n<\/span>The person closing the transaction is responsible for filing the form. If no one is responsible for closing the transaction, the person responsible for filing the form is, in the following order:<\/p>\n<p>1. The mortgage lender<\/p>\n<p>2. The transferer\u2019s broker<\/p>\n<p>3. The transferee\u2019s broker<\/p>\n<p>4. The transferee.<\/p>\n<h4 aria-level=\"3\"><b><span data-contrast=\"auto\">Primary filer or the person responsible for closing:<\/span><\/b><\/h4>\n<ul>\n<li><span data-contrast=\"auto\">It&#8217;s usually the title or escrow company, settlement attorney, or any other party that prepares the final Closing Disclosure (HUD-1).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">This filer collects the seller\u2019s <a href=\"https:\/\/www.tax1099.com\/blog\/what-is-form-w-9\/\">Form W-9<\/a>, principal-residence certification (if any), and all settlement documents.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h4 aria-level=\"3\"><b><span data-contrast=\"auto\">When there&#8217;s no <\/span><\/b><b><span data-contrast=\"none\">closing agent<\/span><\/b><b><span data-contrast=\"auto\">, the IRS has a backup chain<\/span><\/b><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\n<ul>\n<li><span data-contrast=\"auto\">A mortgage lender that handles payoff funds <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Transferor\u2019s real-estate broker (the seller\u2019s agent)\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Transferee (buyer) if no one else is involved<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<h4 aria-level=\"3\"><b><span data-contrast=\"auto\">Designation agreement for private or FSBO deals<\/span><\/b><span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\n<p><span data-contrast=\"auto\">The seller and buyer may agree before or at closing to designate one party to file. Most often, it&#8217;s the buyer\u2019s attorney. Keep the signed designation with the closing packet in case of an IRS audit and for your peace of mind!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h4 aria-level=\"3\"><b><span data-contrast=\"auto\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Special cases:<\/span><\/b><\/h4>\n<ul>\n<li><span data-contrast=\"auto\">Foreclosures and Deeds-in-Lieu: The foreclosing lender files.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Section 1031 Exchanges: If there\u2019s cash \u201cboot,\u201d the qualified intermediary takes the lead.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>However, you may designate the person required to file the form in a written agreement. Visit <a href=\"https:\/\/www.irs.gov\/instructions\/i1099s\">the IRS<\/a> for more details.<\/p>\n<h2 aria-level=\"2\">Understanding When to Report and When to Exempt<\/h2>\n<p><span data-contrast=\"auto\">You don&#8217;t have to report every property transaction to the IRS. That&#8217;s why it&#8217;s crucial you know what entails reportable transaction and exempt transactions. Here&#8217;s a simple guide to help you save time, paperwork and stress!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h4 aria-level=\"3\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reportable transactions<\/h4>\n<ul>\n<li><span data-contrast=\"auto\">Standard sales or exchanges of real estate<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Deeds in lieu of foreclosure<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Redemption of timber\/minerals<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Sales of partial ownership interests<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h4 aria-level=\"3\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Exempt transactions (with proper documentation)<\/h4>\n<ul>\n<li><span data-contrast=\"auto\">Principal residence<\/span><span data-contrast=\"auto\"> that fully qualifies for the \u00a7121 exclusion<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Certain easements for utility services.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Corporate liquidations or bankruptcy transfers<\/span><\/li>\n<\/ul>\n<h2 aria-level=\"2\">Box-by-Box Guide to Complete Form 1099-S<span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<table data-tablestyle=\"MsoTableGrid\" data-tablelook=\"1696\" aria-rowcount=\"7\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"0\">\n<h4 style=\"text-align: center;\">Box Number<\/h4>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\">\n<h4>What Goes Here<\/h4>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\">\n<h4>Tips for Payers<\/h4>\n<\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><strong>Box 1\u00a0<\/strong><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Date of closing<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><span data-contrast=\"none\">Match deed\/HUD-1 date.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><strong>Box 2\u00a0<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Gross proceeds<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Include cash, notes, liabilities assumed, and FMV of property\/services.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><strong>Box 3<\/strong><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Property address and legal description<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><span data-contrast=\"none\">Use the parcel number if no street address.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr aria-rowindex=\"5\">\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><strong>Box 4<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Federal tax withheld (backup)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><span data-ccp-props=\"{}\">24% if the seller fails the TIN match.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr aria-rowindex=\"6\">\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><strong>Box 5<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Buyer\u2019s share of real estate tax<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-ccp-props=\"{}\">Use the prorated figure from the closing statement.\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"7\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><strong>Box 6<\/strong><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Foreign transferor checkbox<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td data-celllook=\"0\">\n<p style=\"text-align: center;\"><span data-contrast=\"none\">Alerts to possible FIRPTA withholding.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>1099-S Deadlines for TY 2025<\/h2>\n<p>The following are the <a href=\"https:\/\/www.tax1099.com\/blog\/form-1099-s-due-date\/\">1099-S due dates<\/a> for each filing type. Forms must be transmitted to the IRS before the deadline.<\/p>\n<ul>\n<li>Recipient copy &gt; February 15<\/li>\n<li>IRS eFile &gt; March 31<\/li>\n<li>IRS paper filing &gt; February 28<\/li>\n<\/ul>\n<p>If a due date falls on a weekend or holiday, it will be due the next business day.<\/p>\n<h4 aria-level=\"3\">What\u2019s the penalty?<span data-ccp-props=\"{&quot;335559685&quot;:0,&quot;335559991&quot;:360}\">\u00a0<\/span><\/h4>\n<p><span data-contrast=\"auto\">The IRS imposes an escalating penalty structure, meaning your penalty depends on how late you file. It begins at $60 per form and can go up to $660 for intentional disregard.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2>How to eFile 1099-S?<\/h2>\n<p><span data-contrast=\"auto\">Filing Form 1099-S is easier when you break down the process into manageable steps. Here&#8217;s how you can seamlessly file the form with Tax1099.<\/span><span data-ccp-props=\"{&quot;335559685&quot;:0}\">\u00a0<\/span><\/p>\n<ol>\n<li><span data-contrast=\"auto\">The first step is <\/span><b><span data-contrast=\"auto\">signing up<\/span><\/b><span data-contrast=\"auto\"> for Tax1099 if you&#8217;re a new user or logging into your existing account.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Next, <\/span><b><span data-contrast=\"auto\">import data<\/span><\/b><span data-contrast=\"auto\">. Upload your closing disclosure documents or use API for automatic bulk imports.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Run the automatic <\/span><a href=\"https:\/\/www.tax1099.com\/features\/tin-lookup-tin-check-verification\"><b><span data-contrast=\"auto\">TIN check<\/span><\/b><\/a><span data-contrast=\"auto\"> to ensure seller names and Tax ID numbers match IRS records. This helps avoid backup withholding.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Next, the <\/span><b><span data-contrast=\"auto\">Form Builder<\/span><\/b><span data-contrast=\"auto\"> fills in payer and seller information and completes Boxes 1-6. Just review everything.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Validate and submit<\/span><\/b><span data-contrast=\"auto\"> to the IRS. The platform double-checks everything to make sure it meets IRS requirements. It also catches any errors.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Now, <\/span><b><span data-contrast=\"auto\">send recipient copies<\/span><\/b><span data-contrast=\"auto\">. You can choose USPS mail,\u00a0 secure portal, or email with the payee&#8217;s consent.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">You&#8217;ve done the heavy lifting. It&#8217;s now time to <\/span><b><span data-contrast=\"auto\">track status<\/span><\/b><span data-contrast=\"auto\">. Monitor IRS&#8217; \u201cAccepted,\u201d \u201cRejected,\u201d or \u201cCorrections Needed\u201d real-time alerts.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">You&#8217;re almost done! <\/span><b><span data-contrast=\"auto\">Store<\/span><\/b><span data-contrast=\"auto\"> your e-filed forms and certifications for at least four years in Tax1099&#8217;s secure vault.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><a href=\"https:\/\/www.tax1099.com\/\">Tax1099<\/a> is the go-to source for your 1099 filings. You can <a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-form-1099-s\">eFile Form 1099-S Online<\/a> for the year 2020 using Tax1099. Don\u2019t wait for the deadline \u2013 eFile Now!<\/p>\n<h2 aria-level=\"2\">Common Errors and Fixes<span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<p><span data-contrast=\"auto\">Watch out for these common errors to stay compliant and penalty-free! But if you catch an error, file a corrected form right away!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Reporting net proceeds instead of gross.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Filing late when principal-residence certification is incomplete.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Omitting FIRPTA checkbox for foreign sellers.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Using the seller\u2019s mailing address in Box 3 instead of the property address. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Quick Fix: If you spot errors, file a &#8216;CORRECTED&#8217; return as soon as possible to limit penalties. The sooner you act on it, the better!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"2\">Compliance Checklist for Payers<\/h2>\n<p><span data-contrast=\"auto\">Navigating the intricacies of real estate tax reporting can seem daunting. But having a go-to checklist makes your life easy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Start by collecting the seller\u2019s completed Form W-9 and principal-residence certification if it&#8217;s applicable.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Run IRS TIN-Match check before you file. It will tell you if the name and TIN combination match IRS records.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Confirm your gross proceeds on the Closing Disclosure.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Fill out Boxes 1-6 carefully. Double-check all dates and parcel numbers.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Use Tax1099 to e-file your forms. After submission, verify that the IRS accepted your filing.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Deliver Copy B to the seller by January 31.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">As with all tax records, retain all forms and certifications until at least 2030 for 2025 transactions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h2 aria-level=\"2\">Real-Life Scenarios<span data-ccp-props=\"{}\">\u00a0<\/span><\/h2>\n<table data-tablestyle=\"MsoTableGrid\" data-tablelook=\"1696\" aria-rowcount=\"6\">\n<tbody>\n<tr aria-rowindex=\"1\">\n<td data-celllook=\"0\">\n<h4 style=\"text-align: center;\">SITUATION<\/h4>\n<\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\">\n<h4>FACTS<\/h4>\n<\/td>\n<td data-celllook=\"0\">\n<h4 style=\"text-align: center;\">ACTION<\/h4>\n<\/td>\n<\/tr>\n<tr aria-rowindex=\"2\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><b><span data-contrast=\"none\">Home Sale &#8211; Principal Residence<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">House sells for $350,000 and the seller signs the IRS principal-residence certificate.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">No Form 1099-S required.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"3\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><b><span data-contrast=\"none\">\u00a0 Commercial Building Sale<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Office building sells for $2 million through a title company.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Title company files Form 1099-S showing $2 million in Box 2.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"4\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><b><span data-contrast=\"none\">Timber Rights Sale<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Timber rights on land sell for $75,000.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Settlement attorney files Form 1099-S; timber interests are reportable.<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"5\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><b><span data-contrast=\"none\">Foreclosure (Deed-in-Lieu)<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-ccp-props=\"{}\">The bank takes the property back and cancels a $120,000 mortgage.\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Bank files Form 1099-S for $120,000; lender is the responsible filed.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<tr aria-rowindex=\"6\">\n<td style=\"text-align: center;\" data-celllook=\"0\"><b><span data-contrast=\"none\">FSBO Condo (Private Sale)<\/span><\/b><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">For-sale-by-owner condo; buyer and seller agree the buyer\u2019s attorney will handle filing.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<td style=\"text-align: center;\" data-celllook=\"0\"><span data-contrast=\"none\">Buyer\u2019s attorney files Form 1099-S under the written <\/span><span data-contrast=\"none\">designation.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<hr \/>\n<h2 aria-level=\"2\">FAQs<\/h2>\n<ol>\n<li><b><span data-contrast=\"auto\"> Is there a <\/span><\/b><b><span data-contrast=\"none\">minimum reporting threshold for Form 1099-S?<br \/>\n<\/span><\/b>No, Form 1099-S doesn&#8217;t have a minimum reporting requirement. You must file it for any reportable real-property transaction, regardless of price.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"2\">\n<li><b><span data-contrast=\"none\"> What if the seller lost money on the property? Should the payer still file?<br \/>\n<\/span><\/b>Yes, you must <a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-form-1099-s\">file Form 1099-S<\/a> even if the seller&#8217;s gain is zero or negative.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"3\">\n<li><b><span data-contrast=\"none\"> How should I report multiple parcels sold under one contract?<br \/>\n<\/span><\/b>You must issue one form per parcel. You can also aggregate multiple parcels on a single form only if they share the same legal description and address.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"4\">\n<li><b><span data-contrast=\"none\"> How should I handle a short sale?<br \/>\n<\/span><\/b>In a short sale, report the actual gross proceeds paid to the lender. The cancellation of the remaining debt is reported separately, usually on <a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-form-1099-c\">Form 1099-C<\/a>.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"5\">\n<li><b><span data-contrast=\"none\"> Is electronic delivery of Copy B allowed?<br \/>\n<\/span><\/b>Yes, e-delivery is allowed. But get the seller&#8217;s explicit consent and follow all the formatting guidelines in IRS Publication 1179.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"6\">\n<li><b><span data-contrast=\"none\"> Do Section 1031 exchanges require Form 1099-S?<br \/>\n<\/span><\/b>Generally, yes. Unless the specific exchange qualifies for a narrow exemption with no cash boot involved.<span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol start=\"7\">\n<li><b><span data-contrast=\"none\"> What happens if I discover an error after the March 31 deadline?<br \/>\n<\/span><\/b>File a <b style=\"font-family: inherit;\"><span data-contrast=\"none\">CORRECTED<\/span><\/b><span style=\"font-family: inherit;\" data-contrast=\"none\"> Form 1099-S as soon as you identify the error to minimize penalties.<\/span><span style=\"font-family: inherit;\" data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow text-center\">\n<h4><span class=\"TextRun SCXW79473935 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW79473935 BCX8\">Your real estate tax compliance made simple!<br \/>\nTax1099 handles TIN checks and helps you eFile Form 1099-S accurately to protect your business from costly penalties.<\/span><\/span><span class=\"EOP SCXW79473935 BCX8\" data-ccp-props=\"{}\">\u00a0<\/span><\/h4>\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/web.tax1099.com\/#\/signup?ref=blog\">Start Now<\/a><\/div>\n<\/div>\n<\/blockquote>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is there a minimum reporting threshold for Form 1099-S?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"No, Form 1099-S doesn't have a minimum reporting requirement. You must file it for any reportable real-property transaction, regardless of price.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What if the seller lost money on the property? Should the payer still file?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes, you must file Form 1099-S even if the seller's gain is zero or negative.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How should I report multiple parcels sold under one contract?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"You must issue one form per parcel. You can also aggregate multiple parcels on a single form only if they share the same legal description and address.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How should I handle a short sale?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"In a short sale, report the actual gross proceeds paid to the lender. The cancellation of the remaining debt is reported separately, usually on Form 1099-C.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"Is electronic delivery of Copy B allowed?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Yes, e-delivery is allowed. 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Or are you a seasoned filer who knows the ins and outs of the realm of real estate? Whatever the situation, in this blog, we have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[8,9,11,56,40,21,57,35],"class_list":["post-421","post","type-post","status-publish","format-standard","hentry","category-1099-forms","tag-8","tag-1099-form","tag-1099-forms","tag-1099-s","tag-different-types-of-1099-forms","tag-form-1099","tag-form-1099-s","tag-types-of-1099-forms"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Form 1099-S | Filing Requirements | How To eFile | Deadline<\/title>\n<meta name=\"description\" content=\"What is Form 1099-S? It is used to report the sale or exchange of real estate transactions to the IRS. Filing Requirements, How To eFile &amp; Deadlines.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax1099.com\/blog\/what-is-form-1099-s\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is Form 1099-S | Filing Requirements | How To eFile | Deadline\" \/>\n<meta property=\"og:description\" content=\"What is Form 1099-S? It is used to report the sale or exchange of real estate transactions to the IRS. 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