Understanding Real Estate Transactions: 1099-S Instructions

If you’ve recently participated in a real estate transaction, you’re likely in need of 1099-s instructions. The 1099-s, or the version of the form used for Proceeds from Real Estate Transactions, is used when reporting the sale, purchase, or transfer of real estate property. However, like many versions of the 1099, figuring out this form can be tricky. If you’re in need of instructions for this form, the IRS resource can help. Below, however, you’ll find the most important information distilled for your convenience.

As always, completing a 1099 is never easy. If you’re looking for 1099-s instructions, you may also be in need of a filing tool. Our base platform, a 1099/W-2 forms filer, is just what you need to quickly and accurately fill out and file any number of forms, no matter which type of 1099 you need. This software platform supports all W-2s, 1099s, 1098s, and 5498 forms. See our customer support page for a full list of supported forms.


1099-S Instructions and Tips

Form 1099-S has six sections, all of which concern whichever transaction took place. Those preparing the form will need to include the date of closing and the gross proceeds from the sale, as well as the property’s address and whether the transferor will receive any property or services. You must also indicate the status (nonresident, foreign partnership, foreign real estate, or foreign trust) of the property and buyer, plus the buyer’s part of the real estate tax. In all, preparing the form shouldn’t take more than a few minutes, but you’ll need to have your information correct.


Who is the Transferor?

Many places on a 1099-S form indicate the need for information regarding the transferor. This language does not appear in other types of 1099 forms, you some may not know the terminology. When you’re filing out a 1099-s form, a transferor is any person responsible for closing a real estate transaction. Sometimes, the transferor is responsible for filling out the form, while other times, the mortgage lender is responsible for filling it out. If you do accounting work for either of those businesses, you will need to understand who holds responsibility for each transaction.


Additional Resources from AMS

The form 1099-s instructions are straightforward but requesting help points up the need for greater support. Advanced Micro Solutions has a full, dedicated 1099 FAQ for more specific questions. However, for more tips and solutions for filling out form 1099-S, check out our 1099-S general information guide. We’ll walk you through the most important parts of this common form.

As always, dealing with real estate transactions requires nuance. With the right software solution, you’ll be able to efficiently and accurately complete the Proceeds from Real Estate Transactions form. Our menu-driven platform offers a range of data management features that make 1099 filing more reliable. Plus, users can print tables, worksheets, client letters, and recipient lists right from the software, which may be especially useful for real estate transactions. We know that following the 1099-s instructions is just half the battle. The other half is finding a filing solution that works.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.