@ashhdz17 your statement is true, but not all inclusive.
If the seller receives a 1099-S then they are required to report the sale with no exceptions. Generally a 1099-S is issued to the seller if *any* proceeds are paid to the seller at the closing. But just because the seller is paid proceeds at the closing, does not mean they sold at a gain. However, it's assumed they did by the IRS until it's reported otherwise on the seller's tax return.
