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1099-S CERTIFICATION EXEMPTION FORM. This form may be completed by the seller of a principal residence. This information is necessary to determine whether the sale or exchange should be reported to the seller, and to the Internal Revenue Service on Form 1099-S, Proceeds From Real Estate Transactions.
Trusts and nonprofit organizations are usually exempt from taxes, so you dont need to send them a 1099 form. However, if youre a tax-exempt organization, you must fill out and send this form to independent contractors, vendors, attorneys and other parties, says the IRS.
If that happens to you, then youll likely receive a notice in the mail from the IRS saying that you owe back taxes on the income that wasnt reported on your tax return. The notice you receive will likely include interest on taxes due from the due date of the return to 30 days from the date on the notice.
Form 1099-B requires specific details about the transactions (gains, losses, stocks, bonds, etc) and the investment (the date it was made, sold, acquired, etc). Form 1099-S is an information return used to report the exchange or sale of real estate property.
The primary residence exemption for filing a Form 1099-S only applies when you provide written assurances that the property sold was your main home. However, the Form 1099-S may still be issued, even if the exemption applies. It is just not required.
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Since the 1099 form you receive is also reported to the IRS, the government knows about your income even if you forget to include it on your tax return.
In exchange for the 1099-S form, a Seller may be asked to sign a Certification for No Information Reporting on the Sale of Exchange of Principal Residence. This form completed and signed by the Seller is used to determine whether a sale of real property must be reported to the IRS.
Generally, you are required to report a transaction that consists in whole or in part of the sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in any of the following. Improved or unimproved land, including air space.
If real estate is sold or exchanged and other assets are sold or exchanged in the same transaction, report the total gross proceeds from the entire transaction on Form 1099-S.

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