TaxBandits Knowledge Base

What is Form 1099-S?

IRS Form 1099-S is used to report proceeds from real estate transactions, such as sales or exchanges of real estate. This form is required by the Internal Revenue Service (IRS) for anyone who sells or transfers real estate for a profit.

The form is typically used by the person or entity responsible for closing the transaction, such as the settlement agent or attorney. The form reports the gross proceeds from the sale or exchange of the real estate, as well as the name, address, and taxpayer identification number (TIN) of the person who received the proceeds.

The recipient of the form must report the information on their tax return, and the IRS uses the form to ensure that the correct amount of capital gains tax is paid on the transaction. If you sell or transfer real estate for a profit, you may receive a Form 1099-S from the person or entity responsible for closing the transaction.

To learn more about Form 1099-S, click here.