Is a 1099-s required for the sale of a personal residence. I would think yes. How is the title company to know if it really is personal residence that could qualigy for tax exclusion. Taxpayer could have several homes??
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I believe
I believe the seller certifies in writing that he qualifies for the exclusion, and then no 1099-S is prepared. I have always thought that everybody ought to be issued a 1099-S and have to report the sale even if the exclusion is met. I imagine a lot of people say they qualify for the exclusion whether they do or not to avoid the form. Of course, they could also just lie on a tax return, too.
Wow, my glass is half empty today.If you loan someone $20 and never see them again, it was probably worth it. -
IRS Instructions for Form 1099-S, page 1:
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 and
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. The
certification must be signed by each seller under penalties of
perjury.Comment
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