Welcome or Register

Thank you for visiting today! 

Enjoy browsing our listings and we hope you find our website easy to use.

Don't hesitate to call us if you have any further questions about any property found, or if you don't see what you are looking for, let us search for you!  Just call the office so we can get some details from you and we will help find you the perfect home...We Listen With Our Heart!

Back to Table of Contents

Required Reporting to the I.R.S.

Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service.

This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S.

To help you better understand this subject, the Land Title Association has answered some of the questions most commonly asked about Required Reporting to the I.R.S.

Who is required to report to the I.R.S.?

Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.

The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.

What is an I.R.S. Form 1099S, and what will be reported?

The Form 1099S is the reporting form adopted by the I.R.S. for submitting the information required by law.

The information will be transferred onto magnetic media by the settlement agent who will store the information and make the required report to the I.R.S. The settlement agent is also responsible for keeping a master copy of all transactions reported.

In general, information required by the I.R.S. falls into the following categories:

  1. The name, address and taxpayer ID number (social security or tax identification number) of the seller(s)
  2. A general description of the property (in most cases an address)
  3. The closing date of the transaction
  4. The gross proceeds of the transaction (even though gross proceeds do not correspond to taxable income)
  5. Any property involved as part of the transaction other than cash or cash equivalent
  6. The name, address and taxpayer identification number of the settlement agent.
  7. Real estate tax paid in advance that is allocable to the buyer.

On what type of transactions is a Form 1099S required?

Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses, townhouses, and condominiums. Also reportable are sales or exchanges of improved or unimproved land, commercial or industrial buildings, condominiums, stock in a cooperative housing corporation and mobile homes (manufactured homes) affixed to real property.

Specifically excluded from reporting are foreclosures and abandonment of real property and financing or refinancing of properties.

What happens if the seller(s) refuses to provide the taxpayer identification number for the Form 1099S?

The settlement agent is required to request the transferor’s taxpayer identification number(s) (TIN(s)) before the time of closing. You may request a TIN on Form W-9 or use an alternative written request. The IRS has included sample wording of an alternative written request in the instructions for preparation of Form 1099S.

Should the seller fail to provide the identification number and certify its correctness, the settlement agent may choose to:

  1. Delay the closing of the transactions until the information is furnished, or
  2. Complete the transaction and report to the I.R.S. that an attempt was made to obtain the information from the seller.

How is the sale reported when there is more than one seller involved or when multiple sellers do not own equal interests in the property?

Multiple sellers may allocate the gross proceeds among themselves for purposes of reporting. If there is no allocation, an incomplete allocation or conflicting allocations, then the entire gross proceeds will be reported for each seller.

Where can I go for further information on taxation of real property?

The I.R.S. provides free publications that explain the tax aspects of real estate transactions. You may wish to order:

  • Publication #523 “Tax Information on Selling Your Home”
  • Publication #530 “Tax Information for Home Owners”
  • Publication #544 “Sales and Other Dispositions of Assets”
  • Publication #551 “Basis of Assets”

To place your order, phone toll-free (800) 829-3676.

Article by CLTA

Back to Table of Contents
agent photo
Brenda Milleson, Greg Milleson
& Archie Lennon
Ann Milleson, BROKER

152 W. Main Street
New Concord, OH 43762
Phone: 740-261-9022 Fax: 740.261.9024
Email: bmillesonrealestate@yahoo.com   gmillesonrealestate@yahoo.com, archiel2010@hotmail.com

 

Testimonials Page

"A special thanks to Brenda and Greg Milleson with Homeland Realty, Inc. for helping us find the home of our dreams. We moved to Ohio from Alabama. We told Brenda what we were looking for and our price range. She nailed it! She knew exactly what we were looking for. Two very special people!" Terry & Kerri Townsend
"Thank you for all of your help in buying my beautiful home. Buying or selling a home can be very stressful and you really made it seem easy. You were positive and responsive. Your ability to jump in and make sure things got done was amazing. It was a pleasure working with you. I would recommend you highly to anyone needing an excellent realtor." Suzanne Hale
"Brenda, I simply could not have asked for a better realtor to help me with my first home buying experience! You are so knowledgeable of your profession and you were always willing to go the extra mile. You patiently answered my numerous questions and were excellent at helping me work through the process! I can't thank you enough!" Lisa Grove
"Brenda was amazing and extremely helpful. My situation was unique because my house was divided between me and my three step daughters..................Brenda went way beyond the call of duty for me and I have recommended her to all of my friends. She became a very good friend throughout of this process and I am thankful we became acquainted. She's the best!" Bonnie Thompson
"Thank you for making this process so much easier than we ever imagined. You went above and beyond any expectations we ever had. You answered all of our questions (and there were a ton) without hesitation. We could never thank you enough!" Matthew & Samantha Horstman
Thank you Brenda for giving me your full attention in selling my house. I highly recommend you to others. Your professionalism yet personal consideration for others make you the best. A sale done fast and right. Best wishes for continued success!" Darlene Lake
View All

Equal Housing Opportunity

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu