1) When the sale of a home takes place, is there always a 1099? No matter residential or rental?
Or sometimes there is a 1099, and sometimes there is no 1099?====>>IT DEPENDS; Transactions reported on an IRS Form 1099-S affect your taxes under certain circumstances because federal tax laws require you to report all income and capital gains on your annual income tax return. If you received a Form 1099-S, the transaction needs to be reported on your tax return, but that does not necessarily mean you have a taxable gain to report as income.. If a gain applies, you will then report the transaction on your tax return. If you meet both the ownership and use tests, you qualify to exclude up to $250k of gain income from the sale of your main home/ up to $500kfor MFJ
If you did NOT receive a Form 1099-S for this transaction, you would not be required to report the transaction on your tax return.
(2) Who issues 1099?
The escrow company?
The title company?====> When you sell your home, federal tax law requires lenders or real estate agents to file a Form 1099-S with the IRS and send you a copy if you do not meet IRS requirements for excluding the taxable gain from the sale on your income tax return. To avoid violating IRS reporting rules, the lender or agent may send you a 1099-S even if you qualify for the taxable gain exclusion.