The 1099-S Questionnaire or Solicitation & Certification of No Information Reporting on the Sale or Exchange of a Principal Residence:
This form is required by the IRS to determine if a seller will be issued a 1099 for tax filing purposes.
According to the IRS:
https://www.irs.gov/instructions/i1099s
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.
Inherently permanent structures, including any residential, commercial, or industrial building.
A condominium unit and its appurtenant fixtures and common elements, including land.
Stock in a cooperative housing corporation (as defined in section 216).
Any non-contingent interest in standing timber.
Sale or exchange.
A sale or exchange includes any transaction properly treated as a sale or exchange for federal income tax purposes, even if the transaction is not currently taxable.
Important Notes:
- A notary can provide basic definitions and guide the seller through the document but, must NEVER advise on how to answer or complete the form.
- A 1031 exchange is an investment property exchange; one may furlough tax obligations by exchanging one investment property for another under certain IRS codes. The signer will be fully aware if they are involved in a 1031 exchange transaction. Signers are encouraged to consult their title agent, accountant or attorney with specific questions regarding this form.
