Escrow Tip – IRS Form 1099-S

When is a 1099-S issued in the sale of Real Property?

For sales or 1031 exchanges of certain real estate, the Escrow Officer is legally required to report the proceeds to the IRS using form 1099-S.

Some sales of principal residences are exempt from 1099-S reporting; in these cases an “IRS Form 1099-S Certification Exemption Form” is signed by the seller under penalty of perjury. Not all principal residences are exempt.

Some sellers exempt from 1099-S reporting are Corporations, Governmental Units and builders.