Form 1099-S Instructions for 2024

1. What is Form 1099-S?

The 1099-S is a part of the 1099 Form Series. According to the IRS, Form 1099-S is used to report proceeds from real estate transactions, this includes both sales and exchanges of property. This includes sales or exchanges related to improved or unimproved land (including air space); permanent structures that are commercial, residential, or industrial in nature; condominium units, stock in cooperative housing corporations, and non-contingent interest in Standing Timber.

2. What information is required to fill out Form 1099-S?

The IRS requires specific information on Form 1099-S. This includes, but is not limited to the closing date of the transaction, the gross proceeds, and the address of the property. The individual filing Form 1099-S will also need to indicate if the transferor is a foreign person and enter the buyer’s part of the real estate tax.

3. Form 1099-S Instructions - A complete overview

In total, Form 1099-S has 6 boxes that are used to indicate and report certain information. Before beginning with Box 1, the filer will need to fill in their basic information, such as their legal name, address, and TIN. They will also need to fill in the transferor’s legal name, address, TIN, and account number if applicable.

Let’s have a closer look at Form 1099-S instructions:

• In Box 1, the filer must enter the date of closing for the property.
• In Box 2, enter the gross proceeds, this is the cash amount that the transferor will receive in exchange for the property.
• In Box 3, enter the address and/or legal description of the property.
• In Box 4, check the box if this statement applies, “The transferor received or will receive property or services as part of the consideration”.
• Check the box in Box 5 to indicate that the transferor is a foreign person by IRS definition.
• Finally, in Box 6, enter the real estate tax paid in advance that is allocable to the buyer, if this is a transaction involving a residence.

4. When is the deadline to file Form 1099-S?

The Form 1099-S deadline to file with the IRS is no later than March 31, 2025. In addition to filing with the IRS, a recipient copy must be provided to the transferors. The deadline to distribute copies of Form 1099-S is February 15, 2025.

5. E-filing Form 1099-S with TaxBandits

Once you have all the necessary information at your fingertips, e-filing 1099-S with TaxBandits is simple and straightforward. Just follow these steps:

• Create an account with TaxBandits.
• Select or add the business you are filing for.
• Enter the required Form 1099-S details.
• Review and submit Form 1099-S to the IRS.

Need a recipient copy solution? TaxBandits has you covered! You can select from our postal mail and online access options.

Get started with TaxBandits today and stay compliant with the IRS!