Form 1099-S: Proceeds from Real Estate Transactions
Report proceeds of $600 or more from the sale or exchange of real estate.
Filing Deadline
January 31 (to transferor) / February 28 (paper) or March 31 (e-file) to IRS
Who Files
Closing agents, title companies, attorneys
Threshold
$600 or more in gross proceeds
Overview
Form 1099-S is used to report the sale or exchange of real estate. It's typically prepared by the person responsible for closing the transaction (title company, attorney, or escrow agent).
The form reports gross proceeds, not gain or loss. Sellers use this information to calculate and report capital gains on their tax return. Various exemptions exist, particularly for home sales qualifying for the residence exclusion.
Who Must File
Required Filers
- •Title or escrow companies handling real estate closings
- •Real estate attorneys responsible for closing
- •Person responsible for closing must file if proceeds are $600+
- •Required regardless of whether gain is taxable
Exceptions & Notes
- ✕Sale of principal residence if seller certifies gain is excludable under Section 121
- ✕Transfer to corporation controlled by transferor for stock (Section 351)
- ✕Transfer between spouses or incident to divorce
- ✕Sale of property for $600 or less
Form Structure & Instructions
Here's what information is required in each section:
Transaction Information
Details of the real estate sale
Buyer and Seller Details
Information about parties to the transaction
Important Filing Notes
Home Sale Exclusion
Sellers can exclude up to $250,000 ($500,000 if married filing jointly) of gain from the sale of a principal residence. If exclusion applies, 1099-S may not be required if seller certifies.
Seller Certification
Filers can avoid issuing 1099-S for home sales if seller provides written certification that the residence exclusion applies and gain doesn't exceed the threshold.
Investment and Rental Property
1099-S is always required for investment properties, rental properties, and commercial real estate. The home sale exclusion doesn't apply to these properties.
1031 Exchanges
For like-kind exchanges under Section 1031, 1099-S must still be filed. The exchange may defer tax, but reporting is required. Check Box 4 if property/services are received.
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