owner sells business building to an individual for below appraised value. Same owner also sells contents of building to same individual for x amount of dollars. Question is does a 1099S need to be issued by seller?
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Isn't the 1099-S issued TO the seller, not BY the seller? -
Who Must File:
Generally, the person responsible for closing the transaction, as explained in (1) below, is required to file Form 1099-S. If no one is responsible for closing the transaction, the person required to file Form 1099-S is explained in (2), later. However, you may designate the person required to file Form 1099-S in a written....
see attached instructions from the IRS:
and
The Tax Book - Fast Tax Facts - W-2 / 1099 Roadmap (Page 2-4)Last edited by TAXNJ; 09-30-2020, 12:29 PM.Always cite your source for support to defend your opinionComment
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Yes, sorry mind thinking one thing and fingers another.Comment
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A good place to start is the instructions that come with the form.
"Who Must File
Generally, the person responsible for closing the transaction, as explained in (1) below, is required to file Form 1099-S. If no one is responsible for closing the transaction, the person required to file Form 1099-S is explained in (2), later. However, you may designate the person required to file Form 1099-S in a written agreement, as explained under (3), later."
"owner sells business building to an individual for below appraised value"
Not sure what that has to do with the question, but it is puzzling. Any idea why?
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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Don't be surprised if no 1099-S is ever issued. I have seen many property sales without 1099-S in our areaTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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