Form 1099-S: Real Estate Sale Proceeds
Form 1099-S is issued by the closing agent to the seller reporting gross proceeds from a real estate transaction. The IRS receives a copy, making it essential for sellers to report the sale on their tax returns.
What It Reports
- Box 1: Date of closing
- Box 2: Gross proceeds (sale price)
- Box 6: Seller's share of property taxes
- Property address: Identification of the sold property
Reporting Exemption
- Property is seller's principal residence
- Sale price ≤$10,000 (single) or ≤$500,000 (married)
- Full gain is excludable under Section 121
- Seller provides written certification to closing agent
- Owned and used as residence 2 of last 5 years
Tax Consequences
Report on Form 8949 and Schedule D. Long-term gains taxed at 0-20% plus potential 3.8% NIIT. Primary residence exclusion and 1031 exchange deferral may reduce or eliminate tax.
Related Terms
- Closing — Where the 1099-S is prepared
- Equity — Gain reflects equity growth
- Contract — Sale agreement generating the proceeds
Barnes Walker Title Services
Barnes Walker Title prepares Form 1099-S for every Florida real estate closing, ensuring accurate IRS reporting. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC