Instructions For Form 1099-S - Proceeds From Real Estate Transactions

Statements to Transferors

If you are reporting a like-kind exchange of property for which

no gross proceeds are reportable, enter -0- (zero) in box 2 and

If you are required to file Form 1099-S, you must furnish a

enter an “X” in the checkbox in box 4.

statement to the transferor. Furnish a copy of Form 1099-S or an

acceptable substitute statement to each transferor. For more

Gross proceeds do not include the value of property or

information about the requirement to furnish a statement to the

services received or to be received by, or on behalf of, the

transferor, see part M in the 2018 General Instructions for

transferor or separately stated cash received for personal

Certain Information Returns.

property, such as draperies, rugs, or a washer and dryer.

Do not reduce gross proceeds by any expenses paid by the

You are not required to indicate on Form 1099-S that the

transferor, such as sales commissions, deed preparation,

transferor's (seller's) financing was federally subsidized.

TIP

advertising, and legal expenses. If a HUD-1 is used for a transfer

Also, you are not required to enter the following.

of real estate for cash and notes only, gross proceeds generally

Both total gross proceeds and the allocated gross proceeds

will be the contract sales price shown on that statement. If other

for a multiple transferor transaction (enter either one or the

property or services were exchanged, see the

box 4

instructions,

other).

later.

An indication that the transferor may receive property or

Contingent payment transaction. A contingent payment

services for an obligation having a stated principal amount.

transaction is one in which the receipt, by or on behalf of the

An indication that, in connection with a contingent payment

transferor, is subject to a contingency. The maximum

transaction, the transferor may receive gross proceeds that

determinable proceeds means the greatest amount of gross

cannot be determined with certainty under the regulations and is

proceeds possible if all the contingencies are satisfied. If the

not included in gross proceeds.

maximum amount of gross proceeds cannot be determined with

Truncating transferor's TIN on payee statements. Pursuant

certainty, the maximum determinable proceeds are the greatest

to Treasury Regulations section 301.6109-4, all filers of this form

amount that can be determined with certainty.

may truncate a transferor’s TIN (social security number (SSN),

Box 3. Address (Including City, State, and ZIP

individual taxpayer identification number (ITIN), adoption

taxpayer identification number (ATIN), or employer identification

Code) or Legal Description

number (EIN)) on payee statements. Truncation is not allowed

Enter the address of the property, including the city, state, and

on any documents the filer files with the IRS. A filer’s TIN may

ZIP code. If the address does not sufficiently identify the

not be truncated on any form. See part J in the 2018 General

property, also enter a legal description, such as section, lot, and

Instructions for Certain Information Returns.

block. For timber royalties, enter “Timber royalties.” For

lump-sum timber payments, enter “Lump-sum timber payment.”

Filer's Name, Address, and Telephone Number

Box

Box 4. Check Here if the Transferor Received or

Enter the name, address, and telephone number of the person

Will Receive Property or Services as Part of the

who is filing Form 1099-S. The name and address must be the

Consideration

same as the filer information reported on Form 1096.

If the transferor received or will receive property (other than cash

Transferor's Name and Address Box

and consideration treated as cash in figuring gross proceeds) or

services as part of the consideration for the property, enter an

Enter the name and address of the seller or other transferor of

“X” in the checkbox in box 4.

the real estate. If spouses are joint sellers, it is only necessary to

enter one name and the TIN for that person on the form.

Box 5. Check Here if the Transferor is a Foreign

Person (Nonresident Alien, Foreign Partnership,

Account Number

Foreign Estate, or Foreign Trust)

The account number is required if you have multiple accounts for

a recipient for whom you are filing more than one Form 1099-S.

If the transferor is a foreign person (nonresident alien, foreign

Additionally, the IRS encourages you to designate an account

partnership, foreign estate, or foreign trust), enter an "X" in the

number for all Forms 1099-S that you file. See part L in the 2018

checkbox in box 5. See Form 8288 and its separate instructions

General Instructions for Certain Information Returns.

for tax withholding requirements for properties sold by a foreign

transferor.

Box 1. Date of Closing

Box 6. Buyer's Part of Real Estate Tax

Enter the closing date. On a HUD-1, the closing date is the

settlement date. If a HUD-1 is not used, the closing date is the

For a real estate transaction involving a residence, enter the real

earlier of the date title transfers or the date the economic

estate tax paid in advance that is allocable to the buyer. You do

burdens and benefits of ownership shift to the transferee.

not have to report an amount as allocable to the buyer for real

estate taxes paid in arrears. You may use the appropriate

Box 2. Gross Proceeds

information included on the HUD-1, or comparable form,

provided at closing. For example, a residence is sold in a county

Enter the gross proceeds from the sale or exchange of real

where the real estate tax is paid annually in advance. The seller

estate. Gross proceeds means any cash received or to be

paid real estate taxes of $1,200 for the year in which the sale

received for the real property by or on behalf of the transferor,

took place. The sale occurred at the end of the 9th month of the

including the stated principal amount of a note payable to or for

real estate tax year. Therefore, $300 of the tax paid in advance

the benefit of the transferor and including a note or mortgage

is allocated to the buyer, by reference to the amount of real

paid off at settlement. If the transferee assumes a liability of the

estate tax shown on the HUD-1 as paid by the seller in advance,

transferor or takes the property subject to a liability, such liability

and is reported in box 5. See Notice 93-4, 1993-1 C.B. 295.

is treated as cash and is includible as part of gross proceeds.

For a contingent payment transaction, include the maximum

determinable proceeds. Also see

Multiple Assets

Sold, earlier.

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Instructions for Form 1099-S (2018)

Instructions For Form 1099-S - Proceeds From Real Estate Transactions - 2018 Page 4

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