Q. Is a builder allowed to provide a 1099S or 1099B if he is not a broker or real estate agent?
A. Yes. They are more complicated.
Q. Did the builder issue the "wrong" form?
A. No. It's just an inconvenient form for you to report the income. Box 3 of a 1099-Misc is "other income". Your situation is neither a clear cut stock sale or real estate sale.
