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The 1099 Form is used to report on Real Estate transactions, including a sale or exchange, to the Internal Revenue Service. The types of reportable real estate include the following:

  1. Land or airspace.
  2. Residential or industrial buildings.
  3. Condominium units.
  4. Stock in a cooperative housing corporation.
  5. Interest in standing timber.

How Does the 1099-S Affect My Taxes?

Profit made of selling a house is considered a taxable gain by the IRS. However, if you are married and select to file a joint return with a spouse, the IRS allows you to exclude up to $500,000 from your taxable income.

Who Must File the1099-S?

The template must be completed and submitted by the person responsible for closing a transaction, like a settlement agent or title agent. If there is no one responsible for closing a transaction the blank can be submitted by either a transferee’s attorney, transferor’s attorney, or an escrow company. In unique cases, if all the professionals listed-above fail to submit the document, you can refer to a mortgage lender, transferor’s broker, transferee’s broker, or designate a responsible person with a Designation Agreement.

When Should Form 1099-S Be Filed?

The blank should be submitted to the IRS by February 15 if mailed and by April 2, if filed electronically.

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