Should I expect to receive a 1099S from selling a home last year if I sold it for less than I purchased it for?

[amylynn8475]

Although I received cash at closing after selling my home, I still sold it for less than I bought it for?  It's not a short sale or foreclosure, just bad timing in the housing market.  Who will send me the 1099S?  When should I expect it to arrive?

[DoninGA]

Depending on who handles the closing of a property sale in your state you may or may not receive a Form 1099-S.  Speak to your closing attorney or realtor to see if a 1099-S is being sent.  But do not request one if not needed.
Since you have sold at a loss then the sale is not reported on a federal tax return, assuming that the home was never used as a rental or in a business.
If you do receive a Form 1099-S then the sale has to be reported regardless if you had a loss on the sale.

[Opus 17]

The person who would issue the 1099-S is the same person listed on your HUD-1 as settlement agent.  Possibly the bank attorney, I guess.  No 1099-S is required if the proceeds from the sale are less than $250,000 (or $500,000 if you are married), so you may not get one at all.

[girlslovejeeps]

I have the same question, sold house for less than we paid but we had out a large down payment so it looks like we “gained” or have “proceeds” but its just our down payment back. And we lived in house less than 2 years so now we have to pay tax on basically our original down payment? 

[DoninGA]

Your gain or loss on a home sale has nothing to do with a mortgage or a down payment.

Selling Price minus Selling Expenses minus Adjusted Basis of Home (Purchase price plus Improvements) equals Gain or Loss

See IRS Publication 523 Selling Your Home - https://www.irs.gov/pub/irs-pdf/p523.pdf

[Hal_Al]

Instead of coming in the mail next January, like most 1099 forms, the 1099-S is usually included in your closing documents. If you didn't get one at closing, you probably will not be getting one.  It may be labeled "Substitute form 1099-S".

[ha-diane79]

I didn’t received form 1099s. I’ll call the escrow company to see why I haven’t receive the form.

The sale was a loss. The home was not for vacation, personal use or rental. 

I kept the townhouse for4 years and sold at $230,000.  Can  I write off the loss using schdule D, tax year 2021 even that I don’t have the form 1099S?

[Hal_Al]

You do not need a 1099-S to  report the sale.  Although if you did get one, you need to indicated that in TurboTax. 

If the property was held for investment purposes, the loss is deductible.  Inherited property is considered to be investment property, unless you used it for personal reasons while you owned it. 

[JAttaway]

Unless you have depreciated the home for a part of the time it was owned as a rental.