1099-S and Partial Exclusion

[DevinC]

I bought a home in December 2020 for $220,000, and sold it in April 2022 for $258,000. The reason for selling was due to new employment out of state. By owning the home for less than 2 years even as my primary residence, I know I don't meet the full exclusion amount for capital gains. But, I believe I should meet the partial exclusion limit due to my reason for moving. The title agency filed a 1099-S with the IRS but used the first address I moved to in my new state. I have since moved to a new address within the same state I moved to.

Should I be expecting a 1099-S from the IRS? Since the title agency filed using my old address in my new home state, do they need to rectify this? Will the IRS already know my current address?

Additionally, how am I supposed to both report the sale and claim the partial exclusion? The only document I can seem to find is a 1099-S Certification Exemption form, but that only seems to be related to full exclusion amounts, and not partial. This is a very confusing situation for me and I'm not sure if there is some form I am supposed to complete to claim the partial exemption.

[HelenC12 · Accepted solution]

No, you won't get a 1099-S from the IRS. The 1099-S form is issued by the title company. Since the title company sent you a 1099-S form (even if it went to the wrong address), the IRS will expect to see the sale on your income tax return. 

TurboTax will calculate the gain, if any. You'll be asked the reason for the sale. In your case, Change in place (more than 50 miles) of employment. You'll be able to enter the number of months you lived in your home. 

To find out if you have a gain, please enter the 1099-S home sale in TurboTax by following the instructions below:

1. Open or continue your return in TurboTax
2. Search for home sale
3. Select the Jump to link in the search results
4. Answer Yes to Did you sell or have your home foreclosed in 2022? on the Sale of Your Main Home screen
5. Follow the instructions to enter your info.

[DevinC]

Thank you for your response. I'm not certain if the form I was given by the title company at closing is an official 1099-S. It is a informational form of what they entered on a 1099-S they submitted to the IRS. It has their name and TIN info for the filer, and my name and TIN info on the transferor information. The "buyers part of real estate tax" was left blank. Does this sound correct? Does this constitute the real form?

I called the title company and they told me they do not send out 1099-S forms. So...I already have it then?

[SantinoD]

It is true that not all Title companies issue an official 1099-S Form. The information that was given to you should have all the information needed to enter your tax return. If the "buyers part of real estate tax" is blank, this does happen.

But make sure when TurboTax asks the question "Did you receive a 1099-S?" make sure to answer "No".

[Hal_Al]

Q.  I'm not certain if the form I was given by the title company at closing is an official 1099-S.

A. Yes, it is official.  Usually, they do not sent another one in January/February of the following year.