Instructions for Transferor
For sales or exchanges of certain real estate, the person responsible for closing
a real estate transaction must report the real estate proceeds to the IRS and
must furnish this statement to you. To determine if you have to report the sale or
exchange of your main home on your tax return, see the Instructions for
Schedule D (Form 1040). If the real estate was not your main home, report the
transaction on Form 4797, Form 6252, and/or the Schedule D for the
appropriate income tax form. If box 4 is checked and you received or will
receive like-kind property, you must file Form 8824.
Federal mortgage subsidy. You may have to recapture (pay back) all or part of
a federal mortgage subsidy if all the following apply.
• You received a loan provided from the proceeds of a qualified mortgage bond
or you received a mortgage credit certificate.
• Your original mortgage loan was provided after 1990.
• You sold or disposed of your home at a gain during the first 9 years after you
received the federal mortgage subsidy.
• Your income for the year you sold or disposed of your home was over a
specified amount.
This will increase your tax. See Form 8828 and Pub. 523.
Transferor’s taxpayer identification number (TIN). For your protection, this
form may show only the last four digits of your TIN (social security number
(SSN), individual taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification number (EIN)). However,
the issuer has reported your complete TIN to the IRS.
Account number. May show an account or other unique number the filer
assigned to distinguish your account.
Box 1. Shows the date of closing.
Box 2. Shows the gross proceeds from a real estate transaction, generally the
sales price. Gross proceeds include cash and notes payable to you, notes
assumed by the transferee (buyer), and any notes paid off at settlement. Box 2
does not include the value of other property or services you received or will
receive. See Box 4.
Box 3. Shows the address or legal description of the property transferred.
Box 4. If marked, shows that you received or will receive services or property
(other than cash or notes) as part of the consideration for the property
transferred. The value of any services or property (other than cash or notes) is
not included in box 2.
Box 5. If checked, shows that you are a foreign person (nonresident alien,
foreign partnership, foreign estate, or foreign trust).
Box 6. Shows certain real estate tax on a residence charged to the buyer at
settlement. If you have already paid the real estate tax for the period that
includes the sale date, subtract the amount in box 6 from the amount already
paid to determine your deductible real estate tax. But if you have already
deducted the real estate tax in a prior year, generally report this amount as
income on the “Other income” line of Schedule 1 (Form 1040). For more
information, see Pub. 523, Pub. 525, and Pub. 530.