- May 16, 2023
The IRS Form 1099-S is used to report sale or exchange of real estate. This includes exchanges or sales related to real estate land, permanent commercial, residential, or industrial spaces, condominium units, stocks in housing corporations, etc. For exchanges and sales or real estate, the person responsible for closing the real estate transaction should report the real estate proceeds to the IRS and furnish the tax statement to the taxpayer.
Information required to fill out 1099-S Tax Form
The IRS requires specific information to be filed on Form 1099-S. This includes the transaction’s closing date, the property’s address, gross proceeds, etc. The individual filing Form 1099-S should also indicate if the person who transfers the tax is a foreign person. The buyer should enter this information in the real estate tax’s buyer section.
E-Filing Form 1099-S:
The IRS tax Form 1099-S has about six boxes to report certain information. Before starting to fill out the tax Form, the filer has been entering the basic information, such as the legal name of the taxpayer, the address of the taxpayer, and the TIN. The taxpayer must also fill in the transferor’s legal name, address, TIN, and account number. The instructions for filing Form 1099-S are as follows,
1. The filer should enter the date of closing for the property on this box.
2. The taxpayer should enter the gross proceeds, that is, the cash amount the transferor will receive in exchange for the property.
3. Enter the address and the legal description of the property in this box.
4. Check this tax form box if the transferor has received or will receive services or property as part of the transaction consideration.
5. Check this box in the tax Form to indicate if the transferor is a foreign person, as per the definition of the IRS.
6. This box will reveal the real estate tax paid in advance to the buyer if the transaction involves a residence.
E-file With Tax2efile:
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