Get IRS 1099-LS 2019-2024

A “reportable policy sale” is defined generally as the acquisition of an interest in a life insurance contract, directly or indirectly, if the acquirer has no substantial family, business, or financial relationship with the insured (apart from the acquirer's interest in the life insurance contract).

Personal Use. If you're reporting Form 1099-S because you sold your primary residence, then you'll report the sale of the home on Form 8949 and Schedule D. If you're reporting Form 1099-S because you sold a timeshare or vacation home, then you'll also report the sale on Form 8949 and Schedule D.

If you own a life insurance policy, the 1099-R could be the result of a taxable event, such as a full surrender, partial withdrawal, loan or dividend transaction. If you own an annuity, the 1099-R could be the result of a full surrender, a partial withdrawal or the transfer of the contract to a new owner.

If the 1099-S was for a timeshare or vacation home, it's considered a personal capital asset to you and the sale is reportable on Federal Form 8949 and Schedule D. A gain on this sale is reportable income.

Trusts and nonprofit organizations are usually exempt from taxes, so you don't need to send them a 1099 form. However, if you're a tax-exempt organization, you must fill out and send this form to independent contractors, vendors, attorneys and other parties, says the IRS.

File Form 1099-LS if you are the acquirer of a life insurance contract, or any interest in a life insurance contract, in a reportable policy sale. See the Instructions for Form 1009-LS for complete filing requirements.

As a self-employed individual, you must track receipts for tax deductions and keep clean records of your income for the IRS if you don't want to pay 1099 taxes. With good record-keeping, you will be able to file taxes on your self-employment income even if you don't receive 1099.

If the business or other party involved in the real estate transaction submits a 1099-S form to the IRS, as they are required to do by law, and a taxpayer does not report it, the IRS will likely send a bill for taxes owed on the income. Taxpayers do not have to include 1099s with their tax returns submitted to the IRS.