1099-S Forms: Land Title Guarantee Company's Expert Insights (2024)

FAQs

Do you always get a 1099-S when you sell land? ›

Depending on who handles the closing of a property sale in your state you may or may not receive a Form 1099-S. Speak to your closing attorney or realtor to see if a 1099-S is being sent. But do not request one if not needed.

Form 1099-S reports the date of sale and the gross proceeds of the transaction, and it has been sent to the IRS, so a taxpayer who has received one must report it on their tax return. Sale of business property is reported on Form 4797, otherwise the transaction is reported on Form 8949.

Generally, the person responsible for "closing" a reportable transaction is required to file Form 1099-S. However, determining who is responsible for "closing" the transaction can differ depending on the specific facts of the transaction.

If you received a 1099-S for the sale of an inherited property, you likely need to file Form 8949 in addition to Schedule D. Here's how it works: Filling Out Form 8949: On this form, you'll detail each capital asset transaction, including the date acquired, date sold, sales price, cost basis, and the gain or loss.

The deadline to mail 1099s to taxpayers is usually January 31. If a 1099 form is not received, you are still responsible for paying the taxes owed on any income earned during the tax year.

Anyone who sells or exchanges a capital asset such as stock, land, or artwork must complete Form 8949. Both short-term and long-term transactions are documented on the form. Details about the transaction must be filled in including the date of acquisition and disposition, the proceeds of the sale, and the gain or loss.

Key Takeaways

Businesses that send you a Form 1099 are also required to send the same information to the IRS. So, if you don't include reportable income on your tax return, the system that matches tax returns to the information in the IRS systems will likely flag your tax return for further evaluation.

Do I have to report 1099-SA on my tax return? Yes, you must report it. You report information from Form 1099-SA on either Form 8853 or Form 8889. You'll get IRS Form 1099-SA for each HSA or MSA distribution you made in the current tax year.

Who Doesn't Need to Receive a Form 1099-MISC or 1099-NEC? Generally, C corporations, S Corporations, and LLCs formed as corporations or S Corps don't need to receive a 1099-NEC or 1099-MISC. On irs.gov, check the 1099-NEC instructions and 1099-MISC instructions for exceptions when you are required to issue a 1099.

How does a 1099-S affect my taxes? ›

If the 1099-S was for a timeshare or vacation home, it's considered a personal capital asset to you and the sale is reportable on Federal Form 8949 and Schedule D. A gain on this sale is reportable income. The IRS doesn't allow you to deduct a loss since it's personal-use property.

We realize 1099 reporting is a thankless burden for all title agencies as most are required to report 1099 information to the IRS as well as furnish copies to sellers. It can be an arduous task that takes employee time, while risking penalties from the IRS if reporting is late or done inaccurately.

Do You Always Get a 1099-S When You Sell A House? You may not always receive a 1099-S form. When selling your home, you may have signed a form certifying you will not have a taxable gain on the sale.

When you inherit property, the IRS applies what is known as a stepped-up cost basis. You do not automatically pay taxes on any property that you inherit. If you sell, you owe capital gains taxes only on any gains that the asset made since you inherited it.

Capital gains on the sale of vacant land are taxable. If you have held the land for one year or less before selling it, the capital gains are short-term and are taxed at the ordinary income rate.

Whether your small business focuses on real estate or sold unneeded property during the tax year, a copy of form 1099-S, which is sent to both you and the IRS by the closing attorney or real estate official, reports the gross proceeds from the sale.

Reported sale

Taxpayers who don't qualify to exclude all of the taxable gain from their income must report the gain from the sale of their home when they file their tax return. Anyone who chooses not to claim the exclusion must report the taxable gain on their tax return.