Form 1099-S Checklist: 2022 Tax Year
Purpose
Form 1099-S, Proceeds from Real Estate Transactions, reports gross proceeds from the sale or exchange of real estate. This information return helps the Internal Revenue Service track real estate transactions and ensure proper reporting of capital gains on Schedule D and related forms.
For the 2022 tax year, filers must report transactions closed during the calendar year and furnish copies to transferors by February 15, 2023. The IRS filing is due on February 28, 2023, for paper filers, or March 31, 2023, for electronic filers. The 2022 instructions reflect continued application of post–Tax Cuts and Jobs Act like-kind exchange rules and FIRPTA requirements for foreign persons.
Completion Steps
1. Enter Filer Identification Information
Enter the filer’s complete Employer Identification Number (EIN), name, street address, city, state, ZIP code, and current telephone number in the header. Verify EIN accuracy before filing to prevent IRS matching errors during information return processing.
2. Record Transferor Taxpayer Identification Numbers
Enter the transferor’s taxpayer identification number (SSN, ITIN, EIN, or ATIN) in full on Copy A filed with the IRS.
On Copy B furnished to the transferor, you may truncate the TIN to display only the last four digits in accordance with Treasury Regulations section 301.6109-4. Truncation is permitted only on recipient copies and not on forms filed with the IRS.
3. Enter Closing Date (Box 1)
Complete Box 1 with the exact date of closing. The closing date is the earlier of the date the title transfers or the date the economic burdens and benefits of ownership shift to the transferee.
This definition applies consistently across tax years and determines the year in which the transaction must be reported on the transferor’s tax return.
4. Calculate Gross Proceeds (Box 2)
Enter gross proceeds in Box 2. Gross proceeds include the sales price, cash received, and notes payable to the transferor, notes assumed by the buyer, notes paid off at settlement, and any liability the transferee assumes or takes subject to.
Do not reduce gross proceeds by sales commissions, deed preparation costs, advertising expenses, legal fees, or other seller-paid costs. Exclude the fair market value of property or services received, which are reported separately when Box 4 is checked.
5. Enter Property Description (Box 3)
Complete Box 3 with the full street address or legal description of the real property, including city, state, and ZIP code. If available, include a parcel identification number for improved tracking.
The description must sufficiently identify the property, whether it is a condominium unit, investment property, business property, vacation home, standing timber, or other real estate interest.
6. Identify Property or Services Received (Box 4)
Check Box 4 if the transferor received or will receive property or services other than cash or notes as part of the consideration.
Under current law, only real property exchanges qualify for like-kind deferral under Section 1031. If Box 4 is checked and the transaction qualifies as a like-kind exchange, the transferor may be required to file Form 8824.
7. Identify Foreign Person Status (Box 5)
Check Box 5 only if the transferor is a foreign person, including a nonresident alien, foreign partnership, foreign estate, or foreign trust.
Refer to Publication 515 for FIRPTA withholding obligations. If withholding applies, report withholding separately to the IRS as required for foreign entities and nonresident aliens.
8. Enter Buyer’s Portion of Real Estate Tax (Box 6)
Enter the buyer’s portion of real estate tax in Box 6, if applicable. This amount represents real estate tax on a residence paid in advance by the seller and allocable to the buyer.
The transferor must subtract this amount from previously paid taxes or report it as income, consistent with Publication 523 guidance.
9. Furnish Copy B to Transferor
Furnish Copy B to the transferor by February 15, 2023. Delivery may be made by mail or another documented method. Electronic delivery is permitted only if the transferor has provided written consent.
This deadline applies to Forms 1099-B, 1099-S, and certain Forms 1099-MISC.
10. File Copy A with the IRS
File Copy A with the IRS by February 28, 2023, if filing on paper, or by March 31, 2023, if filing electronically.
Electronic filers must use approved software that generates files in accordance with Publication 1220 specifications.
11. Complete Form 1096 for Paper Filings Only
If filing on paper, attach Copy A to Form 1096, completed with filer information, the total number of forms, aggregate gross proceeds, and submission date.
Form 1096 is required only for paper filings. Electronic filers do not submit Form 1096.
12. Retain Copy C for Records
Retain Copy C and supporting documentation for a minimum of four years. This retention period aligns with IRS recordkeeping requirements for information returns and related certifications.
Key Reporting Requirements
Reportable Real Estate
Form 1099-S applies to sales or exchanges of improved or unimproved land, residential and commercial buildings, condominium units with appurtenant fixtures and common elements, cooperative housing corporation stock, and non-contingent interests in standing timber.
The form covers any present or future ownership interest transferred for money, indebtedness, property, or services.
Exceptions to Filing
Certain transactions are not reportable. The primary exception applies to sales of a principal residence for $250,000 or less ($500,000 for married couples) when the seller certifies that the entire gain is excludable under Section 121.
Other exceptions include sales by corporations, governmental units, exempt volume transferors, and de minimis transfers under $600. Required certifications must be retained for four years.
Who Must File
Generally, the person responsible for closing the transaction must file Form 1099-S. This is typically the settlement agent listed on the Closing Disclosure, the closing attorney, the disbursing title or escrow company, or, in some cases, the mortgage lender.
Designation rules prevent duplicate filings and clarify responsibility.
Taxpayer Identification Requirements
Request the transferor’s taxpayer identification number no later than closing.
Use Form W-9 for U.S. persons or the appropriate Form W-8 for foreign persons. Maintain Forms W-9 or substitute statements in your records for four years after the year of sale.
Final Notes
This checklist reflects standard filing procedures and longstanding IRS guidance applicable to the 2022 tax year. While instructions may be updated periodically, core reporting requirements remain consistent.
Always consult the current General Instructions for Certain Information Returns and the specific Instructions for Form 1099-S available at IRS.gov for the most up-to-date guidance.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
