What Is IRS Form 1099-S?
IRS Form 1099-S is used to report gross proceeds from the sale or exchange of real estate. Typically, the settlement agent or person responsible for closing the transaction must file the form with the IRS and provide a copy to the seller.
If the real estate was not the seller’s main home, the transaction may also need to be reported on Form 4797, Form 6252, or Schedule D of the seller’s tax return.
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Key Information Required on Form 1099-S
The form requires:
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Filer name, address, and TIN
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Transferor (seller) information
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Transferee (buyer) information
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Account/escrow number (optional for fewer than 250 filings, required for larger e-file submissions)
How to Fill Out IRS Form 1099-S (Box by Box)
The form includes five boxes, each reporting different details:
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Box 1: Date of Closing
Enter the official date the property transfer was completed. -
Box 2: Gross Proceeds
Report the gross proceeds from the real estate sale, usually the sales price. Includes cash and notes payable, but excludes services or property of other value. -
Box 3: Property Address or Legal Description
Enter the physical address or legal description of the property transferred. -
Box 4: Property/Services Consideration
Check if the seller received or will receive services or property (other than cash/notes) as part of the transaction. -
Box 5: Buyer’s Part of Real Estate Tax
Enter the buyer’s share of real estate tax for the period that includes the sale date. This may affect the seller’s deductible real estate tax. If already deducted in a prior year, report the amount as income on the “Other income” line.
Filing Deadlines for Form 1099-S
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Copy B (Seller): Must be sent by January 31.
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Copy A (IRS): Must be filed with Form 1096 by February 28 (paper) or March 31 (e-file).
👉 Settlement agents who use 1099fire software can easily e-file Form 1099-S and avoid the hassle of pre-printed red-ink forms.
How 1099fire Can Help
Preparing and filing Form 1099-S can be complicated for settlement agents, title companies, and attorneys managing real estate transactions. That’s why so many rely on 1099fire:
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1099-S software to prepare and print forms.
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E-file support with the IRS FIRE/IRIS system.
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Automatic error-checking to reduce IRS rejections.
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Generate and distribute seller copies electronically or by mail.
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Handle large-volume filings with ease.
Visit 1099fire.com to streamline your real estate transaction reporting.