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

acceptable substitute statement to each transferor. For more

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

information about the requirement to furnish a statement to the

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

transferor, see part M in the 2017 General Instructions for

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

Certain Information Returns.

Gross proceeds do not include the value of property or

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

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

transferor or separately stated cash received for personal

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

TIP

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

Also, you are not required to enter the following.

Do not reduce gross proceeds by any expenses paid by the

Both total gross proceeds and the allocated gross proceeds

transferor, such as sales commissions, deed preparation,

for a multiple transferor transaction (enter either one or the

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

other).

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

An indication that the transferor may receive property or

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

services for an obligation having a stated principal amount.

property or services were exchanged, see the box 4 instructions,

An indication that, in connection with a contingent payment

later.

transaction, the transferor may receive gross proceeds that

cannot be determined with certainty under the regulations and is

Contingent payment transaction. A contingent payment

not included in gross proceeds.

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

transferor, is subject to a contingency. The maximum

Truncating transferor's TIN on payee statements. Pursuant

determinable proceeds means the greatest amount of gross

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

proceeds possible if all the contingencies are satisfied. If the

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

maximum amount of gross proceeds cannot be determined with

individual taxpayer identification number (ITIN), adoption

certainty, the maximum determinable proceeds are the greatest

taxpayer identification number (ATIN), or employer identification

amount that can be determined with certainty.

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

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

Box 3. Address or Legal Description (Including

not be truncated on any form. See part J in the 2017 General

City, State, and ZIP Code)

Instructions for Certain Information Returns.

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

Filer's Name, Address, and Telephone Number

ZIP code. If the address does not sufficiently identify the

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

Box

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

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

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

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

same as the filer information reported on Form 1096.

Box 4. Check Here if the Transferor Received or

Will Receive Property or Services as Part of the

Transferor's Name and Address Box

Consideration

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

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

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

and consideration treated as cash in computing gross proceeds)

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

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

Account Number

“X” in the checkbox in box 4.

The account number is required if you have multiple accounts for

Box 5. Check Here if the Transferor is a Foreign

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

Person (nonresident alien, foreign partnership,

Additionally, the IRS encourages you to designate an account

foreign estate, or foreign trust)

number for all Forms 1099-S that you file. See part L in the 2017

General Instructions for Certain Information Returns.

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

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

Box 1. Date of Closing

checkbox in box 5.

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

Box 6. Buyer's Part of Real Estate Tax

earlier of the date title transfers or the date the economic

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

burdens and benefits of ownership shift to the transferee.

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

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

Box 2. Gross Proceeds

estate taxes paid in arrears. You may use the appropriate

Enter the gross proceeds from the sale or exchange of real

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

estate. Gross proceeds means any cash received or to be

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

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

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

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

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

the benefit of the transferor and including a note or mortgage

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

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

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

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

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

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

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

For a contingent payment transaction, include the maximum

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

determinable proceeds. Also see Multiple Assets Sold, earlier.

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Instructions for Form 1099-S (2017)

Instructions For Form 1099-S - Proceeds From Real Estate Transactions - 2017 Page 4

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