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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
You may get the certification any time on or before January
31 of the year after the year of sale. You may rely on the
certification and not file or furnish Form 1099-S unless you know
that any assurance on the certification is incorrect.
You must keep the certification for 4 years after the year of
sale. You may keep the certification on paper, microfilm,
microfiche, or in an electronic storage system.
You are not required to obtain the certification. However, if
you do not obtain it, you must file and furnish Form 1099-S.
2. Any transaction in which the transferor is a corporation (or
is considered to be a corporation under Regulations section
1.6045-4(d)(2)); a governmental unit, including a foreign
government or an international organization; or an exempt
volume transferor. Under this rule, if there are exempt and
nonexempt transferors, you must file Form 1099-S only for the
nonexempt transferor.
An exempt volume transferor is someone who sold or
exchanged during the year, who expects to sell or exchange
during the year, or who sold or exchanged in either of the 2
previous years at least 25 separate items of reportable real
estate to at least 25 separate transferees. In addition, each item
of reportable real estate must have been held, at the date of
closing, or will be held, primarily for sale or resale to customers
in the ordinary course of a trade or business. You are not
required to report an exempt volume transferor's transactions if
you receive the penalties of perjury certification required by
Regulations section 1.6045-4(d)(3).
3. Any transaction that is not a sale or exchange, including a
bequest, a gift (including a transaction treated as a gift under
section 1041), and a financing or refinancing that is not related to
the acquisition of real estate.
4. A transfer in full or partial satisfaction of a debt secured by
the property. This includes a foreclosure, a transfer in lieu of
foreclosure, or an abandonment.
5. A de minimis transfer for less than $600. A transaction is
de minimis if it can be determined with certainty that the total
money, services, and property received or to be received is less
than $600, as measured on the closing date. For example, if a
contract for sale provides for total consideration of “$1.00 plus
other valuable consideration,” the transfer is not a de minimis
transfer unless you can determine that the “other valuable
consideration” is less than $599, as measured on the closing
date. The $600 rule applies to the transaction as a whole, not
separately to each transferor.
No reporting is required for the sale or exchange of an
interest in the following types of property, provided the sale is
not related to the sale or exchange of reportable real estate.
•
An interest in surface or subsurface natural resources (for
example, water, ores, or other natural deposits) or crops,
whether or not such natural resources or crops are severed from
the land. For this purpose, the terms "natural resources" and
"crops" do not include standing timber. For timber royalties, see
Timber, earlier.
•
A burial plot or vault.
•
A manufactured structure used as a dwelling that is
manufactured and assembled at a location different from that
where it is used, but only if such structure is not affixed, on the
closing date, to a foundation. This exception applies to the
transfer of an unaffixed mobile home that is unrelated to the sale
or exchange of reportable real estate.
Who Must File
Generally, the person responsible for closing the transaction, as
explained in (1) below, is required to file Form 1099-S. If no one
is responsible for closing the transaction, the person required to
file Form 1099-S is explained in (2), later. However, you may
designate the person required to file Form 1099-S in a written
agreement, as explained under (3), later.
1. If you are the person responsible for closing the
transaction, you must file Form 1099-S. If a Closing Disclosure
prescribed under the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank) is used and a person is
listed as the settlement agent on the Closing Disclosure, the
person responsible for closing the transaction is the person
listed as the settlement agent on that Closing Disclosure. The
Closing Disclosure combines and replaces the HUD-1
Settlement Statement and the final Truth-in-Lending (TIL)
statement under the Real Estate Settlement Procedures Act
(RESPA) of 1974, as amended, and the Federal Truth in
Lending Act, which is contained in title I of the Consumer Credit
Protection Act, as amended (15 U.S.C. 1601). The form
incorporates the information provided on the Loan Estimate. A
Closing Disclosure includes any amendments, variations, or
substitutions that may be prescribed under Dodd-Frank if any
such form discloses the transferor and transferee, the
application of the proceeds, and the identity of the settlement
agent or other person responsible for preparing the form.
If the Closing Disclosure is not used, or no settlement agent is
listed, the person responsible for closing the transaction is the
person who prepares a Closing Disclosure that identifies the
transferor and transferee, reasonably identifies the real estate
transferred, and describes how the proceeds are to be or were
disbursed.
If no Closing Disclosure is used, or if two or more Closing
Disclosures are used, the person responsible for closing the
transaction is, in the following order:
a. The transferee's attorney who is present at the delivery of
either the transferee's note or a significant part of the cash
proceeds to the transferor or who prepares or reviews the
preparation of the documents transferring legal or equitable
ownership,
b. The transferor's attorney who is present at the delivery of
either the transferee's note or a significant part of the cash
proceeds to the transferor or who prepares or reviews the
preparation of the documents transferring legal or equitable
ownership, or
c. The disbursing title or escrow company that is most
significant in disbursing gross proceeds.
If there is more than one attorney described in (a) or (b), the
one whose involvement is most significant is the person
considered responsible for closing the transaction.
2. If no one is responsible for closing the transaction as
explained in (1) above, the person responsible for filing is, in the
following order: (a) the mortgage lender, (b) the transferor's
broker, (c) the transferee's broker, or (d) the transferee.
For purposes of (2) above, apply the following definitions.
a. Mortgage lender means a person who lends new funds in
connection with the transaction, but only if the loan is at least
partially secured by the real estate. If there is more than one
lender, the one who lends the most new funds is the mortgage
lender. If several lenders advance equal amounts of new funds,
and no other person advances a greater amount of new funds,
the mortgage lender is the one who has the security interest that
is most senior in priority. Amounts advanced by the transferor
are not treated as new funds.
b. Transferor's broker means the broker who contracts with
the transferor and who is compensated for the transaction.
c. Transferee's broker means the broker who significantly
participates in the preparation of the offer to acquire the property
or who presents such offer to the transferor. If there is more than
one such person, the transferee's broker is the one who most
significantly participates in the preparation of the acquisition
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Instructions for Form 1099-S (Rev. 01-2022)