Form 1099-S

In depth

Form 1099-S reports gross sale proceeds to the IRS and the seller. The closing agent or title company is generally responsible for filing it. The form omits adjustments for basis, expenses, or financing structure; sellers must reconcile on their own returns. Misconception: not every sale generates a 1099-S; primary residence sales below the Section 121 exclusion may be exempt if the seller signs a certification. Practically, in FSBO transactions without a title company, the responsibility to file Form 1099-S can fall on the buyer or seller, often missed. In seller-financed deals, the gross proceeds reported equal the full purchase price, and the seller then reports installment recognition on Form 6252. Always verify 1099-S filings to avoid IRS mismatch notices.