Instructions For Form 1099-S - Proceeds From Real Estate Transactions - 2013
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Department of the Treasury
Internal Revenue Service
Instructions for Form 1099-S
Proceeds From Real Estate Transactions
Section references are to the Internal Revenue Code unless
taxable. For example, a sale of a main home may be a
otherwise noted.
reportable sale even though the transferor may be entitled to
exclude the gain under section 121. But see Exceptions on
Future Developments
this page. Also, a transfer to a corporation that qualifies for
nonrecognition of gain under section 351 is a reportable
For the latest information about developments related to
exchange. In addition, a transfer under a land contract is
Forms 1099-S, and its instructions, such as legislation
reportable in the year in which the parties enter into the
enacted after they were published, go to
contract.
form1099s.
What's New
Ownership interest. An ownership interest includes fee
simple interests, life estates, reversions, remainders, and
perpetual easements. It also includes any previously created
Truncating transferor’s identification number on paper
rights to possession or use for all or part of any particular
payee statements. Pursuant to proposed regulations §§
year (for example, a leasehold, easement, or timeshare), if
1.6042-4(b) and 301.6109-4 (REG-148873-09), all filers of
such rights have a remaining term of at least 30 years,
this form may truncate a transferor’s identification number
including any period for which the holder may renew such
(social security number (SSN), individual taxpayer
rights, determined on the date of closing. For example, a
identification number (ITIN), or adoption taxpayer
preexisting leasehold on a building with an original term of 99
identification number (ATIN)) on payee statements. See part
years and a remaining term of 35 years on the closing date is
M in the 2013 General Instructions for Certain Information
an ownership interest; however, if the remaining term is 10
Returns.
years, it is not an ownership interest. An ownership interest
Reminder
does not include any option to acquire real estate. An
ownership interest also includes any contractual interest in a
In addition to these specific instructions, you should also use
sale or exchange of standing timber for a lump-sum payment
the 2013 General Instructions for Certain Information
that is fixed and not contingent.
Returns. Those general instructions include information
about the following topics.
Involuntary conversion. A sale of real estate under threat
Backup withholding.
or imminence of seizure, requisition, or condemnation is
Electronic reporting requirements.
generally a reportable transaction.
Penalties.
Timber. Report on Form 1099-S payments of timber
Who must file (nominee/middleman).
royalties made under a pay-as-cut contract, reportable under
When and where to file.
section 6050N. For more information, see Announcement
Taxpayer identification numbers.
90-129, 1990-48 I.R.B. 10.
Statements to recipients.
Corrected and void returns.
Exceptions
Other general topics.
The following is a list of transactions that are not reportable;
however, you may choose to report them. If you do, you are
You can get the general instructions from
subject to the rules in these instructions.
form1099s
or by calling 1-800-TAX-FORM
(1-800-829-3676).
1. Sale or exchange of a residence (including stock in a
cooperative housing corporation) for $250,000 or less if you
Specific Instructions
received an acceptable written assurance (certification) from
the seller that such residence is the principal residence
File Form 1099-S, Proceeds From Real Estate Transactions,
(within the meaning of section 121) of the seller and the full
to report the sale or exchange of real estate.
amount of the gain on such sale is excludable from gross
income under section 121. If the certification includes an
Reportable Real Estate
assurance that the seller is married, the preceding sentence
Generally, you are required to report a transaction that
shall be applied by substituting “$500,000” for “$250,000.” If
consists in whole or in part of the sale or exchange for
there are joint sellers, you must obtain a certification from
money, indebtedness, property, or services of any present or
each seller (whether married or not) or file Form 1099-S for
future ownership interest in any of the following:
any seller who does not make the certification. The
certification must be signed by each seller under penalties of
1. Improved or unimproved land, including air space;
perjury.
2. Inherently permanent structures, including any
A sample certification format can be found in Revenue
residential, commercial, or industrial building;
Procedure 2007-12, 2007-4 I.R.B. 354, available at
3. A condominium unit and its appurtenant fixtures and
irb/2007-04_IRB/ar09.html.
common elements, including land;
Rev. Proc. 2007-12 does not reflect changes made
4. Stock in a cooperative housing corporation (as defined
by Public Law 110-289, section 3092(a), which
in section 216); and
!
added section 121(b)(4 [sic (5)]). The sample
5. Any non-contingent interest in standing timber.
CAUTION
certification included in Rev. Proc. 2007-12 does not include
an assurance that there has been no period of nonqualified
Sale or exchange. A sale or exchange includes any
use (as that term is defined in section 121(b)(4 [sic (5)])(C))
transaction properly treated as a sale or exchange for federal
after December 31, 2008. Also, the sample certification
income tax purposes, even if the transaction is not currently
Dec 18, 2012
Cat. No. 27988X
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