by 
The Curious Bag
-
Form 1099-S is used to report real estate transactions to the Internal Revenue Service (IRS). These consist of any income, services or indebtedness related to the ownership of a property. Reportable real estate includes land as well as residential, commercial or industrial buildings; leasing; or stock ownership in a housing corporation.
Sale or Exchange
The sale or exchange of property must be reported using Form 1099-S. In the case of a land or property exchange, both parties must report the transfer in the same year as the contract signing.
Ownership Interest
Ownership interest must be reported on Form 1099-S. Individuals who have an ownership interest in a property do not have to own the property, as in the case of a timeshare or long-term property lease.
Who Must File
The person closing the real estate transaction is required to file Form 1099-S. If no one is responsible for closing, the interested parties designate a person to file the form at the time of closing. This pertains to all real estate transactions, except in a property exchange.
Involuntary Conversion
The Federal government requires landowners to report real estate sold because of seizures, requisitions or condemnations. An example of a property falling into this category would be a home foreclosure.
Timber
Timber royalty payments under a pay-as-cut contract must be reported on Form 1099-S form. This includes sales or exchanges for standing timber, too.
Source:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC