Form 1099-S Checklist: 2024 Tax Year
Purpose
Form 1099-S reports gross proceeds from real estate transactions involving the sale or exchange of real property. For the 2024 tax year, filers must verify the reportability of transactions, obtain complete taxpayer identification information, and meet all furnishing and filing deadlines established by the Internal Revenue Service.
This checklist guides reporting persons through compliance requirements for Proceeds from Real Estate Transactions under current IRS rules.
Filing Steps
1. Confirm Transaction Reportability Under Real Property Rules
Verify the property sold qualifies as reportable real estate. Reportable real property includes:
- Improved or unimproved land
- Airspace
- Inherently permanent structures (residential, commercial, or industrial buildings)
- Condominium unit interests with appurtenant fixtures and common elements
- Cooperative housing corporation stock
- Non-contingent interests in standing timber
Under the Tax Cuts and Jobs Act, like-kind exchange treatment under Section 1031 applies only to real property held for trade, business, or investment. Personal property exchanges no longer qualify.
Transactions under $600 are considered de minimis and are not subject to reporting. Principal residence sales that meet certification requirements under the $250,000 (single) or $500,000 (married) exclusion thresholds are exempt from reporting when proper written certification is obtained.
2. Obtain and Record Transferor’s Complete Identification Number
Collect the transferor’s Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), or Employer Identification Number (EIN). Request this information using Form W-9 or an acceptable substitute statement no later than the closing date.
All IRS filings must contain the whole, non-truncated identification number. Although Copy B furnished to the transferor may display only the last four digits for privacy, all copies filed with the IRS must include the complete number.
3. Determine Closing Date and Verify Reportability
Enter the closing date in Box 1. The closing date is the date on the Closing Disclosure, or if absent, the earlier of the title transfer date or when ownership benefits and burdens shift to the transferee.
Confirm the transaction does not fall under an exception, such as sales to corporations or governmental units, foreclosures, transfers in satisfaction of debt, or sales by exempt volume transferors as defined in the General Instructions.
4. Calculate and Enter Gross Proceeds (Box 2)
Report gross proceeds as the total consideration received or to be received by the transferor. Include:
- Cash received
- Stated principal amounts of notes payable to the transferor
- Notes assumed by the buyer
- Notes paid off at settlement
- Liabilities assumed or taken subject to by the transferee
Do not reduce gross proceeds by seller-paid expenses such as commissions, legal fees, or advertising costs. Do not include the fair market value of other property or services received; those items are reflected by checking Box 4.
5. Complete Property Address or Legal Description (Box 3)
Enter the complete street address, city, state, and ZIP code of the property transferred. If the address does not sufficiently identify the property, include the legal description (section, lot, block, or other identifiers).
This information must be sufficient for the IRS to match with local assessor records.
6. Mark Box 4 if non-cash consideration is received
Check Box 4 if the transferor received or will receive property or services other than cash or consideration treated as cash. This alerts the transferor that additional reporting may be required.
If the transaction involves a like-kind exchange of real property, the transferor should file Form 8824 to report the exchange and determine any recognized gain or loss.
7. Verify the foreign transfer status and complete Box 5
Check Box 5 only if the transferor is a foreign person, including a nonresident alien, a foreign partnership, a foreign estate, or a foreign trust.
Marking Box 5 alerts both the IRS and the transferee that FIRPTA withholding obligations may apply. Reporting persons must verify the foreign status of individuals to ensure proper classification and compliance.
8. Record Buyer’s Real Estate Tax in Box 6
For transactions involving a residence, enter the portion of real estate tax paid in advance that is allocable to the buyer. Use the proration shown on the Closing Disclosure or comparable settlement statement.
Do not report real estate tax paid in arrears. The transferor must reconcile this amount against taxes previously paid and deducted, and it may become taxable income if previously deducted.
9. Furnish Copy B to Transferor
Prepare and furnish Copy B to the transferor by February 17, 2025. This deadline reflects the adjustment for the 2024 tax year due to the weekend and federal holidays.
Retain proof of timely delivery, such as certified mail receipts, delivery logs, or confirmations from a third-party processor.
10. Prepare Copies for IRS Filing
Prepare Copy A with data identical to Copy B for filing with the IRS. Paper filers must use an original scannable red-ink form obtained from the IRS or an approved vendor. Do not print Copy A from the IRS website PDFs, as they are not scannable for IRS processing.
11. File With the IRS by the Applicable Deadline
For paper filing, attach Copy A to Form 1096. The paper filing deadline for the 2024 tax year is March 2, 2025.
For electronic filing, submit Form 1099-S through the IRS Information Returns Intake System (IRIS) or the FIRE system. The electronic filing deadline is March 31, 2025. Filers submitting 10 or more information returns in total must file electronically. Electronic filers do not submit Form 1096.
12. Maintain Records and File Corrections if Needed
Retain settlement statements, Closing Disclosures, Forms W-9, and related documentation for at least four years following the tax year of the transaction.
If an error is discovered after filing, submit a corrected Form 1099-S by marking the CORRECTED box and furnishing an updated Copy B to the transferor as soon as possible.
Critical Compliance Notes
Like-Kind Exchange Treatment
Like-kind exchange treatment for real property under Section 1031 is a permanent provision with no scheduled expiration date.
Copy B Furnishing Deadline
The Copy B furnishing deadline for 2024 transactions is February 17, 2025, due to adjustments for weekends and federal holidays.
Form 1096 Requirement
Form 1096 is required only for paper filings. Electronic filers do not submit Form 1096.
Deadline Adjustments
All IRS deadlines automatically adjust to the next business day when falling on weekends or federal holidays.
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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.
