Form 1099-S, Proceeds From Real Estate Transactions, is the information return the closing agent files to tell the IRS a property was sold and for how much. As of October 2026, the person responsible for closing usually files it, a home sale of $250,000 or less ($500,000 for a married seller) can be skipped with the seller's written certification, and deals under $600 aren't reportable.
If you're selling, you don't fill this form in yourself. You receive a copy from the title company, escrow agent or attorney, and the same numbers go to the IRS. If you run a title, escrow or small conveyancing business, this is your form,, and the instructions set out exactly who has to file and when.
Who has to file Form 1099-S
The IRS sets a pecking order. Generally the person responsible for closing the transaction files. If nobody is, the duty falls in turn to the mortgage lender, the transferor's broker, the transferee's broker and then the transferee. You can also name the filer in a written designation agreement signed at or before closing, and that agreement can sit on the Closing Disclosure.
| Situation | Who files |
|---|---|
| A settlement agent runs the closing | The person responsible for closing, usually the title or escrow company or attorney |
| No one is responsible for closing | The mortgage lender, then the transferor's broker, then the transferee's broker, then the transferee |
| The parties sign a designation agreement | The person designated, if they sign it (closing agent, either side's attorney, the title or escrow company that disburses the most proceeds, or the lender) |
| Several sellers on one property | A separate Form 1099-S for each transferor, using the allocation of proceeds they give you |
One detail is easy to miss: you can't charge your customer a separate fee for complying with the 1099-S rules. You can build the cost into your normal fees for the transaction, but a line item for it isn't allowed.
Transactions you don't have to report
The instructions list exceptions. You may still report them if you choose, but then every 1099-S rule applies to you.
- A sale of a main home for $250,000 or less ($500,000 if the seller is married) when you get a written certification from the seller that it's their principal residence and the full gain is excludable. Joint sellers each have to certify, or you file for the one who doesn't.
- Any sale where the transferor is a corporation, a governmental unit or an exempt volume transferor (someone selling at least 25 separate items of reportable real estate to at least 25 separate buyers, held for sale to customers).
- Anything that isn't a sale or exchange, such as a gift or a bequest, and a transfer in full or partial satisfaction of a debt, including a foreclosure or a deed in lieu.
- A de minimis transfer for less than $600, measured for the whole deal, not per seller.
The home certification can be collected any time up to January 31 of the year after the sale, and you must keep it for 4 years. You aren't obliged to ask for it. If you don't, you file and furnish the form.
What's new: digital assets on Form 1099-S
Beginning in tax year 2026, digital assets used in a real estate deal are reported on Form 1099-S. The December 2026 revision adds Box 2c for digital asset gross proceeds and Boxes 8a and 8b for the code and name of any digital asset received as payment. If a buyer pays part of the price in crypto, that now shows up on the seller's form.
Deadlines and e-filing
| Step | Deadline for 2025 forms (filed in 2026) |
|---|---|
| Copy to the transferor | February 17, 2026 |
| File with the IRS on paper | March 2, 2026 |
| File with the IRS electronically | March 31, 2026 |
The IRS uses continuous-use revisions now, so the December 2026 form and instructions are used to report 2026 sales in early 2027 and later years until a new revision appears. The e-file trigger is low: if you file 10 or more information returns in total across all types, you must e-file. Forms 1099-S and any 1099-NECs you issue all count towards that 10. See Form 1096 for the paper transmittal rules if you're under the line.
How to complete Form 1099-S, step by step
- Before closing, get each seller's name, address and TIN on Form W-9 or an acceptable substitute, and keep it for 4 years.
- Ask each seller for the principal residence certification if the home exception could apply, and decide whether you're filing at all.
- Box 1: enter the date of closing. Box 2a: total gross proceeds. Box 2b and 2c: the cash and digital asset parts.
- Box 3: the property address or legal description. Box 4: the buyer's part of real estate tax.
- Tick Box 6 if the seller received services or property other than cash, notes or digital assets, and Box 7 if the seller is a foreign person.
- Furnish the seller's copy, then file with the IRS, electronically if you're at 10 returns or more.
If you're the seller
Getting a 1099-S doesn't mean you owe tax. The instructions say a sale of a main home can be reportable even when the gain is excludable. Keep the form with your closing papers and report the sale as your tax return instructions say. If you're self-employed and the property was part of the business, keep it with your business records too, and check how your tax software for the self-employed handles the sale.
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The verdict
For a closing firm, Form 1099-S is mostly about paperwork discipline: a W-9 and, where it fits, a home certification from every seller before the deal closes, and a calendar reminder for mid-February. The two rules I'd pin to the office wall are the 10-return e-file trigger and the ban on a separate filing fee. And if you take any part of a price in crypto from 2026, it goes on the form.
Frequently asked questions
What is Form 1099-S used for?
It reports proceeds from real estate transactions to the IRS and to the seller. The person responsible for closing usually files it.
Who sends Form 1099-S?
Generally the person responsible for closing the transaction, such as the title or escrow company or attorney. The parties can name the filer in a written designation agreement.
Do I get a 1099-S when I sell my house?
Not always. A main home sold for $250,000 or less ($500,000 if married) can be left off if you give the closing agent a written certification that the full gain is excludable.
When is Form 1099-S due?
For 2025 sales, the seller's copy was due February 17, 2026, and the IRS copy March 2, 2026 on paper or March 31, 2026 if e-filed.
Can a closing agent charge a fee for Form 1099-S?
No. The IRS says you may not charge a separate fee for complying with the filing rules, though the cost can be part of your normal fees.
Are digital assets reported on Form 1099-S?
Yes, beginning in tax year 2026, digital assets received in a real estate sale are reported in Box 2c and Boxes 8a and 8b.
