KrisD15
Expert Alumni

Investors & landlords

The Title Company (or whomever closed the sale) uses a 1099-S because that is the form the IRS issued for their use.

It's a form used to report real estate transactions. 

 

A sale of property can result in several different tax situations. 

In your case, it is a capital gain (or loss) so the sale of that property is transferred to a 1099-B allowing the IRS computer to do the math for that transaction. 

It also gives a "match" for the IRS to use against their copy of the 1099-S. 

 

 

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