1001 E Keefe Ave |
Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service.
This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S.
To help you better understand this subject, the Land Title Association has answered some of the questions most commonly asked about Required Reporting to the I.R.S.
Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.
The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.
The Form 1099S is the reporting form adopted by the I.R.S. for submitting the information required by law.
The information will be transferred onto magnetic media by the settlement agent who will store the information and make the required report to the I.R.S. The settlement agent is also responsible for keeping a master copy of all transactions reported.
In general, information required by the I.R.S. falls into the following categories:
Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses, townhouses, and condominiums. Also reportable are sales or exchanges of improved or unimproved land, commercial or industrial buildings, condominiums, stock in a cooperative housing corporation and mobile homes (manufactured homes) affixed to real property.
Specifically excluded from reporting are foreclosures and abandonment of real property and financing or refinancing of properties.
The settlement agent is required to request the transferor’s taxpayer identification number(s) (TIN(s)) before the time of closing. You may request a TIN on Form W-9 or use an alternative written request. The IRS has included sample wording of an alternative written request in the instructions for preparation of Form 1099S.
Should the seller fail to provide the identification number and certify its correctness, the settlement agent may choose to:
Multiple sellers may allocate the gross proceeds among themselves for purposes of reporting. If there is no allocation, an incomplete allocation or conflicting allocations, then the entire gross proceeds will be reported for each seller.
The I.R.S. provides free publications that explain the tax aspects of real estate transactions. You may wish to order:
To place your order, phone toll-free (800) 829-3676.
Article by CLTA
Back to Table of Contents
Claudine Lienau | 414-273-4363 | Email Me
1001 E Keefe Ave. - Milwaukee, WI 53212
Copyright © 2016, All Rights Reserved
Our focus is on SE Wisconsin, especially Milwaukee County. We are very familiar with Milwaukee neighborhoods, especially the East side, including Riverwest and Bay View. However, we cover the entire Metro area of Milwaukee and surrounding suburbs.
Our office is located in popular Riverwest close to many of our past clients and friends we have associated with over the last 30 years.
We can help you with municipalities including Shorewood, Whitefish Bay, Glendale, Brown Deer and Fox Point. We are finding more buyers are also interested in Mequon, Cedarburg, Grafton and Port Washington in Ozaukee county, which offers a short commute to jobs in Milwaukee.
We offer expert service for our buyers and competitive commissions for our sellers. Our competitive commissions are based on price range and our perception of how quickly your home may sell. We are full service Multiple Listing Service Realtors providing you with many years of experience that will result in an efficient transaction saving you time and money.
©2024, Metro MLS (Milwaukee Area). All rights reserved.
Information is supplied by sellers and other third parties and has not been verified. Real estate listings held by brokerage firms other than Terapak Realty MKE, LLC are marked with the BR logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. IDX information is provided exclusively for consumers' personal, non-commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Information last updated on 2024-03-28 17:30:21.