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Department of the Treasury
Internal Revenue Service
Instructions for Form 1099-S

(Rev. January 2022)
Proceeds From Real Estate Transactions

Section references are to the Internal Revenue Code unless taxable. For example, a sale of a main home may be a
otherwise noted. reportable sale even though the transferor may be entitled to
exclude the gain under section 121. But see Exceptions, later.
Future Developments Also, a transfer to a corporation that qualifies for nonrecognition
For the latest information about developments related to Form of gain under section 351 is a reportable exchange. In addition, a
1099-S and its instructions, such as legislation enacted after transfer under a land contract is reportable in the year in which
they were published, go to IRS.gov/Form1099S. the parties enter into the contract.
Ownership interest. An ownership interest includes fee simple
What’s New interests, life estates, reversions, remainders, and perpetual
Continuous-use form and instructions. Form 1099-S and easements. It also includes any previously created rights to
these instructions have been converted from an annual revision possession or use for all or part of any particular year (for
to continuous use. Both the form and instructions will be updated example, a leasehold, easement, or timeshare), if such rights
as needed. For the most recent version, go to IRS.gov/ have a remaining term of at least 30 years, including any period
Form1099S. for which the holder may renew such rights, determined on the
date of closing. For example, a preexisting leasehold on a
Reminders building with an original term of 99 years and a remaining term of
In addition to these specific instructions, you should also use the 35 years on the closing date is an ownership interest; however, if
current General Instructions for Certain Information Returns. the remaining term is 10 years, it is not an ownership interest. An
Those general instructions include information about the ownership interest does not include any option to acquire real
following topics. estate. An ownership interest also includes any contractual
• Who must file. interest in a sale or exchange of standing timber for a lump-sum
• When and where to file. payment that is fixed and not contingent.
• Electronic reporting. Involuntary conversion. A sale of real estate under threat or
• Corrected and void returns. imminence of seizure, requisition, or condemnation is generally
• Statements to recipients. a reportable transaction.
• Taxpayer identification numbers (TINs).
Timber. Report on Form 1099-S payments of timber royalties
• Backup withholding.
made under a pay-as-cut contract, reportable under section
• Penalties.
6050N. For more information, see Announcement 90-129,
• Other general topics.
1990-48 I.R.B. 10.
You can get the general instructions at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099S. Exceptions
The following is a list of transactions that are not reportable;
Online PDF fillable Copies B and C. To ease statement however, you may choose to report them. If you do, you are
furnishing requirements, Copies B and C are fillable online in a subject to the rules in these instructions.
PDF format available at IRS.gov/Form1099S. You can complete
these copies online for furnishing statements to recipients and 1. Sale or exchange of a residence (including stock in a
for retaining in your own files. cooperative housing corporation) for $250,000 or less if you
received an acceptable written assurance (certification) from the
seller that such residence is the principal residence (within the
Specific Instructions meaning of section 121) of the seller and the full amount of the
File Form 1099-S, Proceeds From Real Estate Transactions, to gain on such sale is excludable from gross income under section
report the sale or exchange of real estate. 121. If the certification includes an assurance that the seller is
married, the preceding sentence shall be applied by substituting
Reportable Real Estate “$500,000” for “$250,000.” If there are joint sellers, you must
Generally, you are required to report a transaction that consists obtain a certification from each seller (whether married or not) or
in whole or in part of the sale or exchange for money, file Form 1099-S for any seller who does not make the
indebtedness, property, or services of any present or future certification. Also, the seller must include in the certification that
ownership interest in any of the following. there has been no period of nonqualified use (as that term is
defined in section 121(b)(5)(C)) after December 31, 2008, and
1. Improved or unimproved land, including air space. as required by section 6045(e)(5)(A)(iii), that the full amount of
2. Inherently permanent structures, including any the gain from the sale is excludable under section 121. The
residential, commercial, or industrial building. certification must be signed by each seller under penalties of
3. A condominium unit and its appurtenant fixtures and perjury.
common elements, including land. A sample certification format can be found in Rev. Proc.
4. Stock in a cooperative housing corporation (as defined in 2007-12, 2007-4 I.R.B. 354, available at IRS.gov/irb/
section 216). 2007-04_IRB#RP-2007-12.html. The sample certification does
not include an assurance that there has been no period of
5. Any non-contingent interest in standing timber. nonqualified use and an assurance that the full amount of the
gain from the sale is excludable under section 121. The seller
Sale or exchange. A sale or exchange includes any must add the information as explained earlier.
transaction properly treated as a sale or exchange for federal
income tax purposes, even if the transaction is not currently

Jul 23, 2021 Cat. No. 27988X

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You may get the certification any time on or before January designate the person required to file Form 1099-S in a written
31 of the year after the year of sale. You may rely on the agreement, as explained under (3), later.
certification and not file or furnish Form 1099-S unless you know 1. If you are the person responsible for closing the
that any assurance on the certification is incorrect. transaction, you must file Form 1099-S. If a Closing Disclosure
You must keep the certification for 4 years after the year of prescribed under the Dodd-Frank Wall Street Reform and
sale. You may keep the certification on paper, microfilm, Consumer Protection Act (Dodd-Frank) is used and a person is
microfiche, or in an electronic storage system. listed as the settlement agent on the Closing Disclosure, the
You are not required to obtain the certification. However, if person responsible for closing the transaction is the person
you do not obtain it, you must file and furnish Form 1099-S. listed as the settlement agent on that Closing Disclosure. The
Closing Disclosure combines and replaces the HUD-1
2. Any transaction in which the transferor is a corporation (or Settlement Statement and the final Truth-in-Lending (TIL)
is considered to be a corporation under Regulations section statement under the Real Estate Settlement Procedures Act
1.6045-4(d)(2)); a governmental unit, including a foreign (RESPA) of 1974, as amended, and the Federal Truth in
government or an international organization; or an exempt Lending Act, which is contained in title I of the Consumer Credit
volume transferor. Under this rule, if there are exempt and Protection Act, as amended (15 U.S.C. 1601). The form
nonexempt transferors, you must file Form 1099-S only for the incorporates the information provided on the Loan Estimate. A
nonexempt transferor. Closing Disclosure includes any amendments, variations, or
An exempt volume transferor is someone who sold or substitutions that may be prescribed under Dodd-Frank if any
exchanged during the year, who expects to sell or exchange such form discloses the transferor and transferee, the
during the year, or who sold or exchanged in either of the 2 application of the proceeds, and the identity of the settlement
previous years at least 25 separate items of reportable real agent or other person responsible for preparing the form.
estate to at least 25 separate transferees. In addition, each item If the Closing Disclosure is not used, or no settlement agent is
of reportable real estate must have been held, at the date of listed, the person responsible for closing the transaction is the
closing, or will be held, primarily for sale or resale to customers person who prepares a Closing Disclosure that identifies the
in the ordinary course of a trade or business. You are not transferor and transferee, reasonably identifies the real estate
required to report an exempt volume transferor's transactions if transferred, and describes how the proceeds are to be or were
you receive the penalties of perjury certification required by disbursed.
Regulations section 1.6045-4(d)(3).
If no Closing Disclosure is used, or if two or more Closing
3. Any transaction that is not a sale or exchange, including a Disclosures are used, the person responsible for closing the
bequest, a gift (including a transaction treated as a gift under transaction is, in the following order:
section 1041), and a financing or refinancing that is not related to
the acquisition of real estate. a. The transferee's attorney who is present at the delivery of
either the transferee's note or a significant part of the cash
4. A transfer in full or partial satisfaction of a debt secured by proceeds to the transferor or who prepares or reviews the
the property. This includes a foreclosure, a transfer in lieu of preparation of the documents transferring legal or equitable
foreclosure, or an abandonment. ownership,
5. A de minimis transfer for less than $600. A transaction is b. The transferor's attorney who is present at the delivery of
de minimis if it can be determined with certainty that the total either the transferee's note or a significant part of the cash
money, services, and property received or to be received is less proceeds to the transferor or who prepares or reviews the
than $600, as measured on the closing date. For example, if a preparation of the documents transferring legal or equitable
contract for sale provides for total consideration of “$1.00 plus ownership, or
other valuable consideration,” the transfer is not a de minimis
transfer unless you can determine that the “other valuable c. The disbursing title or escrow company that is most
consideration” is less than $599, as measured on the closing significant in disbursing gross proceeds.
date. The $600 rule applies to the transaction as a whole, not If there is more than one attorney described in (a) or (b), the
separately to each transferor. one whose involvement is most significant is the person
No reporting is required for the sale or exchange of an considered responsible for closing the transaction.
interest in the following types of property, provided the sale is 2. If no one is responsible for closing the transaction as
not related to the sale or exchange of reportable real estate. explained in (1) above, the person responsible for filing is, in the
• An interest in surface or subsurface natural resources (for following order: (a) the mortgage lender, (b) the transferor's
example, water, ores, or other natural deposits) or crops, broker, (c) the transferee's broker, or (d) the transferee.
whether or not such natural resources or crops are severed from For purposes of (2) above, apply the following definitions.
the land. For this purpose, the terms "natural resources" and
"crops" do not include standing timber. For timber royalties, see a. Mortgage lender means a person who lends new funds in
Timber, earlier. connection with the transaction, but only if the loan is at least
• A burial plot or vault. partially secured by the real estate. If there is more than one
• A manufactured structure used as a dwelling that is lender, the one who lends the most new funds is the mortgage
manufactured and assembled at a location different from that lender. If several lenders advance equal amounts of new funds,
where it is used, but only if such structure is not affixed, on the and no other person advances a greater amount of new funds,
closing date, to a foundation. This exception applies to the the mortgage lender is the one who has the security interest that
transfer of an unaffixed mobile home that is unrelated to the sale is most senior in priority. Amounts advanced by the transferor
or exchange of reportable real estate. are not treated as new funds.
b. Transferor's broker means the broker who contracts with
Who Must File the transferor and who is compensated for the transaction.
Generally, the person responsible for closing the transaction, as c. Transferee's broker means the broker who significantly
explained in (1) below, is required to file Form 1099-S. If no one participates in the preparation of the offer to acquire the property
is responsible for closing the transaction, the person required to or who presents such offer to the transferor. If there is more than
file Form 1099-S is explained in (2), later. However, you may one such person, the transferee's broker is the one who most
significantly participates in the preparation of the acquisition

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offer. If there is no such person, the one who most significantly response). If you receive the allocation, report gross proceeds
participates in the presentation of the offer is the transferee's on each Form 1099-S accordingly.
broker. You are not required to, but you may, report gross proceeds
d. Transferee means the person who acquires the greatest in accordance with an allocation received after the closing date
interest in the property. If no one acquires the greatest interest, but before the due date of Form 1099-S (without extensions).
the transferee is the person listed first on the ownership transfer However, you cannot report gross proceeds in accordance with
documents. an allocation received on or after the due date of Form 1099-S
3. Designation agreement. You can enter into a written (without extensions).
agreement at or before closing to designate who must file Form If no gross proceeds are allocated to a transferor because no
1099-S for the transaction. The agreement will identify the allocation or an incomplete allocation is received, you must
person responsible for filing if such designated person signs the report the total unallocated gross proceeds on the Form 1099-S
agreement. It is not necessary that all parties to the transaction made for that transferor. If you do not receive any allocation or
(or that more than one party) enter into the agreement. you receive conflicting allocations, report on each transferor's
You may be designated in the agreement as the person who Form 1099-S the total unallocated gross proceeds.
must file if you are the person responsible for closing the Spouses. If the transferors were spouses at the time of closing,
transaction (as explained in (1) under Who Must File, earlier), who held the property as joint tenants, tenants by the entirety,
the transferee's or transferor's attorney (as explained in (1) tenants in common, or as community property, treat them as a
under Who Must File, earlier), the title or escrow company that is single transferor. Only one Form 1099-S showing either of them
most significant in disbursing gross proceeds, or the mortgage as the transferor is required. You need not request an allocation
lender (as explained in (2a) under Who Must File, earlier). of gross proceeds if spouses are the only transferors. But if you
The designation agreement may be in any written form and receive an uncontested allocation of gross proceeds from them,
may be included on the Closing Disclosure. It must: file Form 1099-S for each spouse according to the allocation. If
a. Identify by name and address the person designated as there are other transferors, you must make a reasonable effort to
responsible for filing, contact either spouse to request an allocation.
b. Include the names and addresses of each person Partnerships. If the property is transferred by a partnership, file
entering into the agreement, only one Form 1099-S for the partnership, not separate Forms
c. Be signed and dated by all persons entering into the 1099-S for each partner.
agreement,
Multiple Assets Sold
d. Include the names and addresses of the transferor and
transferee, and If real estate is sold or exchanged and other assets are sold or
exchanged in the same transaction, report the total gross
e. Include the address and any other information necessary proceeds from the entire transaction on Form 1099-S.
to identify the property.
Each person who signs the agreement must keep it for 4 years. TINs
For each transaction, be sure that only one person is You must request the transferor's TIN no later than the time of
TIP responsible for filing and that only one Form 1099-S is closing. The TIN request need not be made in a separate
filed for each transferor. mailing. Rather, it may be made in person, in a mailing that
includes other items, or electronically. The transferor is required
to furnish his or her complete, non-truncated TIN and to certify
Employees, Agents, and Partners that the TIN is correct. For U.S. persons (including U.S. resident
If an employee, agent, or partner, acting within the scope of such aliens), you may request a TIN on Form W-9, Request for
person's employment, agency, or partnership, participates in a Taxpayer Identification Number and Certification. Foreign
real estate transaction, only the employer, principal, or persons may provide their TIN to you on the appropriate Form
partnership (not the employee, agent, or partner) may be the W-8. See part J in the current General Instructions for Certain
reporting person. However, the participation of a person listed Information Returns.
on the Closing Disclosure as the settlement agent acting as an Alternatively, you may provide a written statement to the
agent of another is not attributed to the principal. transferor similar to the following: “You are required by law to
provide (insert name of person responsible for filing) with your
Foreign Transferors correct taxpayer identification number. If you do not provide
Sales or exchanges involving foreign transferors are reportable (insert name of person responsible for filing) with your correct
on Form 1099-S. For information on the transferee's taxpayer identification number, you may be subject to civil or
responsibility to withhold income tax when a U.S. real property criminal penalties imposed by law.”
interest is acquired from a foreign person, see Pub. 515, The solicitation must contain space for the name, address,
Withholding of Tax on Nonresident Aliens and Foreign Entities. and TIN of the transferor, and a place to certify under penalties
of perjury that the TIN furnished is the correct TIN of the
Multiple Transferors transferor. The certification must read similar to: “Under
For multiple transferors of the same real estate, you must file a penalties of perjury, I certify that I am a U.S. person or U.S.
separate Form 1099-S for each transferor. At or before closing, resident alien and the number shown on this statement is my
you must request from the transferors an allocation of the gross correct taxpayer identification number.”
proceeds among the transferors. The request and the response
are not required to be in writing. You must make a reasonable If you use a Closing Disclosure, you may provide a copy of
effort to contact all transferors of whom you have knowledge. such statement, appropriately modified to solicit the TIN, to the
However, you may rely on the unchallenged response of any transferor. Keep the Form W-9, W-8, or substitute form in your
transferor, and you need not make additional contacts with other records for 4 years.
transferors after at least one complete allocation is received
(100% of gross proceeds, whether or not received in a single Separate Charge Prohibited
You may not charge your customers a separate fee for
complying with the Form 1099-S filing requirements. However,
Instructions for Form 1099-S (Rev. 01-2022) -3-

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you may take into account the cost of filing the form in setting the is treated as cash and is includible as part of gross proceeds.
fees you charge your customers for services in a real estate For a contingent payment transaction, include the maximum
transaction. determinable proceeds. Also see Multiple Assets Sold, earlier.
Statements to Transferors If you are reporting a like-kind exchange of property for which
no gross proceeds are reportable, enter -0- (zero) in box 2 and
If you are required to file Form 1099-S, you must furnish a enter an “X” in the checkbox in box 4.
statement to the transferor. Furnish a copy of Form 1099-S or an
acceptable substitute statement to each transferor. For more Gross proceeds do not include the value of property or
information about the requirement to furnish a statement to the services received or to be received by, or on behalf of, the
transferor, see part M in the current General Instructions for transferor, or separately stated cash received for personal
Certain Information Returns. property, such as draperies, rugs, or a washer and dryer.
Do not reduce gross proceeds by any expenses paid by the
You are not required to indicate on Form 1099-S that the transferor, such as sales commissions, deed preparation,
TIP transferor's (seller's) financing was federally subsidized. advertising, and legal expenses. If a Closing Disclosure is used
Also, you are not required to enter the following. for a transfer of real estate for cash and notes only, gross
• Both total gross proceeds and the allocated gross proceeds proceeds will generally be the contract sales price shown on that
for a multiple transferor transaction (enter either one or the statement. If other property or services were exchanged, see the
other). box 4 instructions, later.
• An indication that the transferor may receive property or Contingent payment transaction. A contingent payment
services for an obligation having a stated principal amount. transaction is one in which the receipt, by or on behalf of the
• An indication that, in connection with a contingent payment transferor, is subject to a contingency. The maximum
transaction, the transferor may receive gross proceeds that determinable proceeds means the greatest amount of gross
cannot be determined with certainty under the regulations and is proceeds possible if all the contingencies are satisfied. If the
not included in gross proceeds. maximum amount of gross proceeds cannot be determined with
certainty, the maximum determinable proceeds are the greatest
Truncating transferor's TIN on payee statements. Pursuant amount that can be determined with certainty.
to Regulations section 301.6109-4, all filers of this form may
truncate a transferor’s TIN (social security number (SSN), Box 3. Address (Including City, State, and ZIP
individual taxpayer identification number (ITIN), adoption Code) or Legal Description
taxpayer identification number (ATIN), or employer identification
number (EIN)) on payee statements. Truncation is not allowed Enter the address of the property, including the city, state, and
on any documents the filer files with the IRS. A filer’s TIN may ZIP code. If the address does not sufficiently identify the
not be truncated on any form. See part J in the current General property, also enter a legal description, such as section, lot, and
Instructions for Certain Information Returns. block. For timber royalties, enter “Timber royalties.” For
lump-sum timber payments, enter “Lump-sum timber payment.”
Filer's Name, Address, and Telephone Number
Box 4. Check Here if the Transferor Received or
Box
Will Receive Property or Services as Part of the
Enter the name, address, and telephone number of the person
who is filing Form 1099-S. The name and address must be the Consideration
same as the filer information reported on Form 1096. If the transferor received or will receive property (other than cash
and consideration treated as cash in figuring gross proceeds) or
Transferor's Name and Address Box services as part of the consideration for the property, enter an
Enter the name and address of the seller or other transferor of “X” in the checkbox in box 4.
the real estate. If spouses are joint sellers, it is only necessary to
enter one name and the TIN for that person on the form. Box 5. Check Here if the Transferor Is a Foreign
Person (Nonresident Alien, Foreign Partnership,
Account Number Foreign Estate, or Foreign Trust)
The account number is required if you have multiple accounts for If the transferor is a foreign person (nonresident alien, foreign
a recipient for whom you are filing more than one Form 1099-S. partnership, foreign estate, or foreign trust), enter an "X" in the
Additionally, the IRS encourages you to designate an account checkbox in box 5. See Form 8288 and its separate instructions
number for all Forms 1099-S that you file. See part L in the for tax withholding requirements for properties sold by a foreign
current General Instructions for Certain Information Returns. transferor.

Box 1. Date of Closing Box 6. Buyer's Part of Real Estate Tax
Enter the closing date. On a Closing Disclosure, the closing date For a real estate transaction involving a residence, enter the real
is the Closing Disclosure date. If a Closing Disclosure is not estate tax paid in advance that is allocable to the buyer. You do
used, the closing date is the earlier of the date title transfers or not have to report an amount as allocable to the buyer for real
the date the economic burdens and benefits of ownership shift to estate taxes paid in arrears. You may use the appropriate
the transferee. information included on the Closing Disclosure, or comparable
form, provided at closing. For example, a residence is sold in a
Box 2. Gross Proceeds county where the real estate tax is paid annually in advance. The
Enter the gross proceeds from the sale or exchange of real seller paid real estate taxes of $1,200 for the year in which the
estate. Gross proceeds means any cash received or to be sale took place. The sale occurred at the end of the 9th month of
received for the real property by or on behalf of the transferor, the real estate tax year. Therefore, $300 of the tax paid in
including the stated principal amount of a note payable to or for advance is allocated to the buyer, by reference to the amount of
the benefit of the transferor and including a note or mortgage real estate tax shown on the Closing Disclosure as paid by the
paid off at settlement. If the transferee assumes a liability of the seller in advance, and is reported in box 5. See Notice 93-4,
transferor or takes the property subject to a liability, such liability 1993-1 C.B. 295.

-4- Instructions for Form 1099-S (Rev. 01-2022)

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