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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:
- Land or airspace.
- Residential or industrial buildings.
- Condominium units.
- Stock in a cooperative housing corporation.
- 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.