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

An indication that the transferor may receive property or

Gross proceeds do not include the value of property or

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

services for an obligation having a stated principal amount; or

transferor or separately stated cash received for personal

An indication that, in connection with a contingent payment

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

transaction, the transferor may receive gross proceeds that

cannot be determined with certainty under the regulations and is

Do not reduce gross proceeds by any expenses paid by the

not included in gross proceeds.

transferor, such as sales commissions, deed preparation,

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

Truncating transferor's identification number on payee

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

statements. Pursuant to Treasury Regulation section

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

301.6109-4, all filers of this form may truncate a transferor’s

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

identification number (social security number (SSN), individual

later.

taxpayer identification number (ITIN), adoption taxpayer

identification number (ATIN), or employer identification number

Contingent payment transaction. A contingent payment

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

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

documents the filer files with the IRS. A filer’s identification

transferor, is subject to a contingency. The maximum

number may not be truncated on any form. See part J in the

determinable proceeds means the greatest amount of gross

2015 General Instructions for Certain Information Returns.

proceeds possible if all the contingencies are satisfied. If the

maximum amount of gross proceeds cannot be determined with

Filer's Name, Address, and Telephone Number

certainty, the maximum determinable proceeds are the greatest

Box

amount that can be determined with certainty.

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

Box 3. Address or Legal Description (Including

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

City, State, and ZIP Code)

same as the filer information reported on Form 1096.

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

Transferor's Name and Address Box

ZIP code. If the address does not sufficiently identify the

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

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

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

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

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

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

Box 4. Check Here if the Transferor Received or

Account Number

Will Receive Property or Services as Part of the

The account number is required if you have multiple accounts for

Consideration

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

Additionally, the IRS encourages you to designate an account

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

number for all Forms 1099-S that you file. See part L in the 2015

and consideration treated as cash in computing gross proceeds)

General Instructions for Certain Information Returns.

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

“X” in the checkbox in box 4.

Box 1. Date of Closing

Box 5. 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,

Enter the gross proceeds from the sale or exchange of real

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

estate. Gross proceeds means any cash received or to be

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

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

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

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

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

the benefit of the transferor and including a note or mortgage

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

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

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

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

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

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

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

For a contingent payment transaction, include the maximum

determinable proceeds. Also see Multiple Assets Sold, earlier.

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

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

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

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Instructions for Form 1099-S (2015)

Instructions For Form 1099-S - Proceeds From Real Estate Transactions - 2015 Page 4

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