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IRS Form 1099-S reports gross proceeds from selling or exchanging real estate. Payment can be in cash, but it may also be in the form of indebtedness, property, digital assets, services, or any other type of consideration.
Unlike some other 1099 forms, there is no $2,000 or $10 minimum threshold for reporting on a 1099-S. The only exception is if the total consideration for the real estate transaction is less than $600 on the closing date. In that case, you don’t need to file a 1099-S.
Usually, the person responsible for closing the transaction is the one who must file this form.
1. Person responsible for closingIf there's no closing statement at all, the responsibility falls in this order:
The parties can also agree in writing, at or before closing, to choose one eligible person to file the 1099-S.
The designated filer can generally be:
Whoever is chosen, the agreement must identify the responsible filer, all parties involved, the transferor and transferee, and the property. Each party must sign and date the agreement, and everyone who signs should keep a copy for at least four years.
Form 1099-S usually applies when there is a sale or exchange of a present or future ownership interest in reportable real estate. The payment does not have to be in cash only. It can also be indebtedness, notes, property, services, digital assets, or another form of value.
Even if only a part of your transaction included selling or exchanging real estate, you may still need to file this form.
In this case, you may need to split the gross proceeds among the transferors, and usually, a separate 1099-S is required for each one unless a special rule applies.
If spouses co-own the property, they are usually treated as one transferor, not two. When a partnership transfers property, it files a single form in the partnership's name, not separate forms for each partner.
You don't need a 1099-S for every transaction. You can still file it if you want, but it is not required unless the IRS tells you to report.
When is a sale or exchange of a principal residence exempt?:
If there are joint sellers, each one generally needs to provide their own certification, whether married or not; Otherwise, the seller who didn't have one may still need a 1099-S.
If a transaction includes both exempt and nonexempt transferors, only the nonexempt transferors receive a 1099-S.
A transfer made in full or partial satisfaction of debt secured by the property isn't generally reported on 1099-S. This includes:
If you can confirm at closing that the total consideration is under $600, the transactions generally doesn't need reporting. The $600 rule applies to the whole transaction, not separately per transferor.
Reporting generally isn't required for the sale or exchange of an interest in:
For tax year 2026, Form 1099-S has several important fields that you must know about to report correctly. They are:
Box 1: Date of closing
Here, you must enter the closing date. If there's no formal closing, use the date the property interest is transferred.
Box 2a: Total gross proceeds
Enter the total gross proceeds in this box. This means the full sales price, including cash, cash equivalents, and digital assets. Do not include property or services that do not match these types.
Gross proceeds should be reported before taking out commissions, legal fees, taxes, or any other costs. List the full amount received from the sale.
Box 3: Property identification
Enter the property’s street address, city, state, and ZIP code. If there is no address, use a legal description that clearly identifies the property.
Box 4: Buyer’s part of real estate tax
For a residence, report any real estate tax paid in advance that applies to the buyer.
Box 6: Noncash property or services
Check this box if the transferor received or expects to receive services or property beyond cash, notes, or digital assets as part of the consideration.
Boxes 8a through 8d: Digital assets
For 2026 transactions, use these boxes if digital assets are received or expected as part of the payment in a sale or exchange.
Tax forms are reviewed and updated regularly. For tax year 2026 (filed in 2027), the IRS has made important changes to Form 1099-S, including new fields for digital assets:
Gross proceeds are split into three boxes: Box 2a (total gross proceeds) is now broken down into Box 2b (cash, notes, or assumed liabilities) and Box 2c (digital assets).
Digital asset reporting: If digital assets are used as payment in a sale, you must now report them. Four new boxes (8a through 8d) are for this purpose. Leave these boxes blank if no digital assets were involved.
Revised address fields: Address information is now split into individual fields, including a dedicated Country field for both the filer's and transferor's address blocks. Sellers with a foreign address require the IRS-specified country code, not a country name.
Box numbers shifted: The information stayed the same, but locations moved. Buyer's real estate tax went from Box 6 to Box 4, and the foreign person checkbox went from Box 5 to Box 7. Also, note that Box 5 of 1099-S is now reserved for future use.
FIRE to IRIS: Starting in 2026, all Form 1099-S eFiling must use the new IRIS system. Apply for an IRIS TCC early because approval can take up to 45 business days though processing times may vary. Make sure your records and software are ready, or your filing could be rejected.
You need accurate information to file Form 1099-S correctly. Here is what you will need:
Filer details: Legal name, mailing address, phone number, and TIN
Transferor details: Legal name, address, TIN or SSN, account or escrow number (when applicable)
Property and transaction details: Closing date, gross proceeds, property address or legal description, buyer’s portion of real estate tax, noncash property or services received, foreign transferor status, and digital asset information (when applicable)
After you file Form 1099-S, you must give a statement to the transferor. This can be a copy of the form or another approved document.
You must request the transferor’s TIN at or before closing, not after. The transferor must provide their full, non-truncated TIN and certify that it is correct. Use Form W-9 for U.S. persons, including resident aliens, or the right Form W-8 for foreign persons.
If you're submitting 10 or more information returns in aggregate during the calendar year, the IRS mandates electronic filing. This is unless a waiver applies.
Step 1: Start with the basics on the filer, such as name, TIN, address, and phone number. Then move on to the transferor’s name, TIN, address, and an account or escrow number, if applicable.
Step 2: Enter the closing date, gross proceeds, property address or legal description, buyer’s real estate tax, and select the relevant checkboxes.
Step 3: If the consideration involves digital assets, you must enter the applicable code, asset name, number of units, and receipt date.
Step 4: Review all information for accuracy before submitting. Accurate details help prevent issues with your filing.
Step 5: Securely transmit Form 1099-S and provide the transferor with a copy by the applicable deadline.
Step 6: Check if the IRS has accepted your submission and keep the acknowledgment in your dashboard. Store copies and supporting documents for at least four years.
For tax year 2026 returns that are filed in early 2027, the due dates are as follows:
| Filing Type | Due Date |
|---|---|
| Transferor Copy | February 16, 2027 |
| IRS Paper Filing | March 1, 2027 |
| IRS eFiling | March 31, 2027 |
If the due date falls on a weekend or a public holiday or legal holiday in the District of Columbia or where the return is to be filed, the deadline moves to the next business day.
The IRS has an escalating penalty structure. This means your penalty depends on how late you file your returns. This is how much it costs for the tax year 2026:
| Late Filing | Penalty per Form |
|---|---|
| Up to 30 days late | $60 |
| After 30 days through August 1 | $130 |
| After August 1 | $340 |
| Intentional disregard of the requirement to file or furnish a payee statement | The greater of $690 or 10% of the aggregate amount required to be reported correctly, with no maximum penalty cap |
Note: If you're unsure about filing Form 1099-S by the deadline, you can use Form 8809 to get a 30-day extension to file with the IRS. But make sure to file this before the original due date.
This is the form to report gross proceeds from real estate transactions, which usually means cash, consideration treated as cash, and digital assets.
Sales or exchanges of land, buildings, condo units, cooperative housing stock, and noncontingent interests in standing timber all generally fall under this.
The general rule is $600 or more in gross proceeds. If you can determine with certainty that total consideration is under $600, the transaction is generally exempt.
The person who's responsible for closing is typically the one who must file. If there’s no closing agent, then it comes down to the IRS's hierarchy or a written agreement that assigns the job to someone.
No. Selling a principal residence can be exempt if the filer gets a seller certification confirming the full gain qualifies for the Section 121 exclusion.
No. Box 2 generally reports gross proceeds without reducing the amount for commissions, legal fees, transfer taxes, or any other selling expenses.
Generally, no. Transfers made to satisfy a secured debt, such as foreclosures or abandonments are usually not reported on Form 1099-S. Instead, they may require Form 1099-A or Form 1099-C.
You must report digital assets starting with tax year 2026. If digital assets were part of the consideration, you'll use the new digital asset boxes on the form to report them.
You could face penalties ranging from $60 per form to $340 per form, depending on how late the filing is. This is for tax year 2026 filings. But for intentional disregard, the minimum is $690 per return.
Watch for these mistakes: reporting net instead of gross proceeds, entering an incorrect closing date, failing to get the transferor’s TIN, using an incomplete property description, or leaving out digital asset details.
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