Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.
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Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

 
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Employee Tax Expert

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

It is not unusual to not receive a 1099-S form. You can ask the closing attorney if one is being sent, but do not request one if its not needed. If you receive the form, you must enter the sale on your tax return. If you don't receive the form and you qualify for gain exclusion (see below), then the sale does not need to be entered on your return.

Gain exclusion:

You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.

If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.

Do not report the sale of your main home on your tax return unless:

  • You have a gain and do not qualify to exclude all of it,
  • You have a gain and choose not to exclude it, or
  • You have a loss and received a Form 1099-S.

Sale of main home 

IRS pub 523


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Level 2

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

My wife and I sold our main home in 2019 which we lived in since the late 90's, and never rented. No 1099-S was completed or sent in to IRS. Gains from the sale were less than the $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. Question is, with several conflicting answers is, do we need to report this on our tax reporting? Or, can it go unreported based on the above.  Many thanks  BTW - we purchased our current main home in the same county and state. What sayeth the IRS on this?   Thanks

 

 

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Expert Alumni

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

It can go unreported based on the above.

 

@LB641

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Level 2

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

Thank You -    No heartburn from the IRS?

One of those questions where in doing research we see No, and we also see "Why Not Do It Anyway". If I read the IRS guidance, it appears to say, Do Not File and Do Not enter.

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Level 10

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

If you are POSITIVE there is no 1099-S, you do NOT need to enter it.

 

However, in some cases a 1099-S is buried in the closing paperwork, so it is often suggested to report it in case a 1099-S does exist (if a 1099-S exists and you don't report the sale, you will get an IRS notice).

 

From a tax standpoint, it is perfectly acceptable and common to report the home sale, even if it not required.

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Level 2

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

Thank You....  This is where for us it gets confusing. A should we or should we not. It seems some IRS publications say Do Not, if no 1099-S is issued, and we fulfill the other conditions. But so many trying to offer suggestions and help, seem split on the issue. Some feel just do it anyway. We looked over our closing documents. What we have is a "Certification For No Information Reporting On The Sale Or Exchange Of A Principle Residence". It is a 2-page 3-part document with "Yes" and "No" answers.

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Expert Alumni

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

It appears you do not need to report the sale of your home.  Here is the IRS Publication that lists the requirements.  

 

"You need to report the gain if ANY of the following is true.

  • You have taxable gain on your home sale (or on the residential portion of your property if you made separate calculations for home and business) and don’t qualify to exclude all of the gain.

  • You received a Form 1099-S. If so, you must report the sale even if you have no taxable gain to report.

  • You wish to report your gain as a taxable gain even though some or all of it is eligible for exclusion. You may wish to do this if, for example, you plan to sell another main home within the next 2 years and are likely to receive a larger gain from the sale of that property. If you choose to report, rather than exclude, your taxable gain, you can undo that choice by filing an amended return within 3 years of the due date of your return for the year of the sale, excluding extensions."

Of course as bullet three and others have mentioned you may report the sale if you wish for any reason.  

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Level 15

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

The general rules are this:

 - If you receive a 1099-S then you are required to report the sale *no* *matter* *what*

 - If you do not receive a 1099-S and your gain on the sale qualifies to be 100% excluded from taxes, then you do not need to report it on your federal tax return. But you can if you want.

 Now if at any time during your ownership of the property you claimed any type of business use such as a home office or renting it, or renting out a room, then while all of your gain may or may not be excluded from taxation, you are required to report the sale. That's because any depreciation you took on the property is recaptured and taxed. Recaptured depreciation is "NOT" included in the "2 of last 5" capital gains exclusion rules.

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Level 2

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

 

Thank You - To All and Everyone

To confirm, we do not appear to have a 1099-S. What we do have in it's place is a "Certification For No Information Reporting On The Sale Or Exchange Of A Principle Residence". It is a 2-page 3-part document with "Yes" and "No" answers. We lived in it since the late 90's as our main home. Never renter or used as business.

It sounds like even the IRS does not want us to report same - unless necessary.  We are just trying to be sure.

thanks

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Level 2

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

@PaulaM 

 

Your last comments strike me as emphatic  and specific..... While I truly appreciate all of the returns on this question, that many have and question when the time comes....  your last lines strike a cord

"Do not report the sale of your main home on your tax return unless:"

  • You have a gain and do not qualify to exclude all of it,
  • You have a gain and choose not to exclude it, or
  • You have a loss and received a Form 1099-S.

Thank You - To All and Everyone

To confirm, we do not appear to have a 1099-S. What we do have in it's place is a "Certification For No Information Reporting On The Sale Or Exchange Of A Principle Residence". It is a 2-page 3-part document with "Yes" and "No" answers. We lived in it since the late 90's as our main home. Never renter or used as business. It sounds like even the IRS does not want us to report same - unless necessary.  We are just trying to be sure. thanks

 

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Expert Alumni

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

If you did not receive a 1099-S, qualify for the exclusion and have no business or rental use you do not need to report the sale unless you want to. It is your choice at that point.

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Level 1

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

Does it need to be reported to the state if it doesn't need to be reported to the federal gov't?

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Expert Alumni

Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

No. Most states follow the Federal in this regard.

 

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