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

If you use a Uniform Settlement Statement, you may

transferor, including the stated principal amount of a note

provide a copy of such statement, appropriately modified to

payable to or for the benefit of the transferor and including a

solicit the TIN, to the transferor. Keep the Form W-9 or

note or mortgage paid off at settlement. If the transferee

substitute form in your records for 4 years.

assumes a liability of the transferor or takes the property

subject to a liability, such liability is treated as cash and is

Separate Charge Prohibited

includible as part of gross proceeds. For a contingent

payment transaction, include the maximum determinable

You may not charge your customers a separate fee for

proceeds. Also see Multiple Assets Sold on page 3.

complying with the Form 1099-S filing requirements.

However, you may take into account the cost of filing the

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

form in setting the fees you charge your customers for

which no gross proceeds are reportable, enter 0 (zero) in

services in a real estate transaction.

box 2 and enter an “X” in the checkbox in box 4.

Statements to Transferors

Gross proceeds do not include the value of property or

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

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

transferor or separately stated cash received for personal

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

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

an acceptable substitute statement to each transferor. For

more information about the requirement to furnish a

Do not reduce gross proceeds by any expenses paid by

statement to the transferor, see part M in the 2013 General

the transferor, such as sales commissions, deed preparation,

Instructions for Certain Information Returns.

advertising, and legal expenses. If a Uniform Settlement

Statement is used for a transfer of real estate for cash and

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

notes only, gross proceeds generally will be the contract

the transferor's (seller's) financing was federally

TIP

sales price shown on that statement. If other property or

subsidized. Also, you are not required to enter the

services were exchanged, see the box 4 instructions, below.

following:

Both total gross proceeds and the allocated gross

Contingent payment transaction. A contingent payment

proceeds for a multiple transferor transaction (enter either

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

one or the other);

transferor, is subject to a contingency. The maximum

An indication that the transferor may receive property or

determinable proceeds means the greatest amount of gross

services for an obligation having a stated principal amount; or

proceeds possible if all the contingencies are satisfied. If the

An indication that, in connection with a contingent payment

maximum amount of gross proceeds cannot be determined

transaction, the transferor may receive gross proceeds that

with certainty, the maximum determinable proceeds are the

cannot be determined with certainty under the regulations

greatest amount that can be determined with certainty.

and is not included in gross proceeds.

Box 3. Address or Legal Description (Including

City, State, and ZIP Code)

Filer's Name, Address, and Telephone Number

Box

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

and ZIP code. If the address does not sufficiently identify the

Enter the name, address, and telephone number of the

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

person who is filing Form 1099-S. The name and address

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

must be the same as the filer information reported on Form

lump-sum timber payments, enter “Lump-sum timber

1096.

payment.”

Transferor's Name and Address Box

Box 4. Check Here if the Transferor Received or

Enter the name and address of the seller or other transferor

Will Receive Property or Services as Part of the

of the real estate. If a husband and wife are joint sellers, it is

Consideration

only necessary to enter one name and the TIN for that person

on the form.

If the transferor received or will receive property (other than

cash and consideration treated as cash in computing gross

Account Number

proceeds) or services as part of the consideration for the

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

The account number is required if you have multiple

accounts for a recipient for whom you are filing more than

Box 5. Buyer's Part of Real Estate Tax

one Form 1099-S. Additionally, the IRS encourages you to

designate an account number for all Forms 1099-S that you

For a real estate transaction involving a residence, enter the

file. See part L in the 2013 General Instructions for Certain

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

Information Returns.

You do not have to report an amount as allocable to the

buyer for real estate taxes paid in arrears. You may use the

Box 1. Date of Closing

appropriate information included on the HUD-1, or

comparable form, provided at closing. For example, a

Enter the closing date. On a Uniform Settlement Statement,

residence is sold in a county where the real estate tax is paid

the closing date is the settlement date. If a Uniform

annually in advance. The seller paid real estate taxes of

Settlement Statement is not used, the closing date is the

$1,200 for the year in which the sale took place. The sale

earlier of the date title transfers or the date the economic

occurred at the end of the 9th month of the real estate tax

burdens and benefits of ownership shift to the transferee.

year. Therefore, $300 of the tax paid in advance is allocated

Box 2. Gross Proceeds

to the buyer, by reference to the amount of real estate tax

shown on the HUD-1 as paid by the seller in advance, and is

Enter the gross proceeds from the sale or exchange of real

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

estate. Gross proceeds means any cash received or to be

received for the real property by or on behalf of the

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Instructions for Form 1099-S (2013)

Instructions For Form 1099-S - Proceeds From Real Estate Transactions - 2013 Page 4

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