Instructions for Form 1099-S, Proceeds From Real Estate Transactions

• Legal Form Number: 1099-S
• Year: 2026
• Issuer: Treasury Department
• Section: Treasury Department

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Instructions for Form 1099-S

(Rev. January 2022)

Proceeds From Real Estate Transactions

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless

otherwise noted.

Future Developments

For the latest information about developments related to Form

1099-S and its instructions, such as legislation enacted after

they were published, go to IRS.gov/Form1099S.

What’s New

Continuous-use form and instructions. Form 1099-S and

these instructions have been converted from an annual revision

to continuous use. Both the form and instructions will be updated

as needed. For the most recent version, go to IRS.gov/

Form1099S.

Reminders

In addition to these specific instructions, you should also use the

current General Instructions for Certain Information Returns.

Those general instructions include information about the

following topics.

•Who must file.

•When and where to file.

•Electronic reporting.

•Corrected and void returns.

•Statements to recipients.

•Taxpayer identification numbers (TINs).

•Backup withholding.

•Penalties.

•Other general topics.

You can get the general instructions at IRS.gov/

1099GeneralInstructions or go to IRS.gov/Form1099S.

Online PDF fillable Copies B and C. To ease statement

furnishing requirements, Copies B and C are fillable online in a

PDF format available at IRS.gov/Form1099S. You can complete

these copies online for furnishing statements to recipients and

for retaining in your own files.

Specific Instructions

File Form 1099-S, Proceeds From Real Estate Transactions, to

report the sale or exchange of real estate.

Reportable Real Estate

Generally, you are required to report a transaction that consists

in whole or in part of the sale or exchange for money,

indebtedness, property, or services of any present or future

ownership interest in any of the following.

1. Improved or unimproved land, including air space.

2. Inherently permanent structures, including any

residential, commercial, or industrial building.

3. A condominium unit and its appurtenant fixtures and

common elements, including land.

4. Stock in a cooperative housing corporation (as defined in

section 216).

5. Any non-contingent interest in standing timber.

Sale or exchange. A sale or exchange includes any

transaction properly treated as a sale or exchange for federal

income tax purposes, even if the transaction is not currently

taxable. For example, a sale of a main home may be a

reportable sale even though the transferor may be entitled to

exclude the gain under section 121. But see Exceptions, later.

Also, a transfer to a corporation that qualifies for nonrecognition

of gain under section 351 is a reportable exchange. In addition, a

transfer under a land contract is reportable in the year in which

the parties enter into the contract.

Ownership interest. An ownership interest includes fee simple

interests, life estates, reversions, remainders, and perpetual

easements. It also includes any previously created rights to

possession or use for all or part of any particular year (for

example, a leasehold, easement, or timeshare), if such rights

have a remaining term of at least 30 years, including any period

for which the holder may renew such rights, determined on the

date of closing. For example, a preexisting leasehold on a

building with an original term of 99 years and a remaining term of

35 years on the closing date is an ownership interest; however, if

the remaining term is 10 years, it is not an ownership interest. An

ownership interest does not include any option to acquire real

estate. An ownership interest also includes any contractual

interest in a sale or exchange of standing timber for a lump-sum

payment that is fixed and not contingent.

Involuntary conversion. A sale of real estate under threat or

imminence of seizure, requisition, or condemnation is generally

a reportable transaction.

Timber. Report on Form 1099-S payments of timber royalties

made under a pay-as-cut contract, reportable under section

6050N. For more information, see Announcement 90-129,

1990-48 I.R.B. 10.

Exceptions

The following is a list of transactions that are not reportable;

however, you may choose to report them. If you do, you are

subject to the rules in these instructions.

1. Sale or exchange of a residence (including stock in a

cooperative housing corporation) for $250,000 or less if you

received an acceptable written assurance (certification) from the

seller that such residence is the principal residence (within the

meaning of section 121) of the seller and the full amount of the

gain on such sale is excludable from gross income under section

121. If the certification includes an assurance that the seller is

married, the preceding sentence shall be applied by substituting

“$500,000” for “$250,000.” If there are joint sellers, you must

obtain a certification from each seller (whether married or not) or

file Form 1099-S for any seller who does not make the

certification. Also, the seller must include in the certification that

there has been no period of nonqualified use (as that term is

defined in section 121(b)(5)(C)) after December 31, 2008, and

as required by section 6045(e)(5)(A)(iii), that the full amount of

the gain from the sale is excludable under section 121. The

certification must be signed by each seller under penalties of

perjury.

A sample certification format can be found in Rev. Proc.

2007-12, 2007-4 I.R.B. 354, available at IRS.gov/irb/

2007-04_IRB#RP-2007-12.html. The sample certification does

not include an assurance that there has been no period of

nonqualified use and an assurance that the full amount of the

gain from the sale is excludable under section 121. The seller

must add the information as explained earlier.

Jul 23, 2021 Cat. No. 27988X