Buying or Selling a Home/1099 after a sale


QUESTION: Ms. Webber, my wife and I sold a house about a month ago and we have yet to receive a 1099 that we have heard is necessary when we file our 2013 tax return in 2014. My question is, who is supposed to give us the 1099 and when? Or are we going to receive it from someone, whoever that may be, by January 31 2014, along with other 1099s from banks, mutual funds, etc.?
Or, is what we heard about getting a 1099 on the sale untrue?
Thank you.

ANSWER: Hi Frank,  You will not receive a 1099 until January 2014. It should come around the same time your W2s come if you are a salaried employee. The reason that you would get a 1099 is if you did a short sale on your house. The bank that was shorted will issue the 1099 which may or may not be taxable to you. It allows the bank to write off the short amount. Most people will fall under the Mortgage Forgiveness Act and will not have to pay taxes on that amount. Here's a link to the IRS website that explains it:

This was put into place during the Bush administration and has been extended year by year so it is still in effect for people who have done short sales this year. I hope this helps!

---------- FOLLOW-UP ----------

QUESTION: Ms. Webber, our sale was not a short sale and there was no mortgage involved in the sale. Did I understand you to say that a 1099 should be expected only if there was a short sale? I was told that I have to file
any gains or losses on the sale when I file my return for 2013. So will I still receive a 1099 in early 2014? Otherwise, how can I prove gains or losses on the sale? Thank you for follow-up opportunity.

I should have asked if it was a short sale - so many people are doing short sales that I assumed you were doing one, sorry! You will still receive the 1099 in January 2014 and you will possibly have capital gains to pay if you have made a profit. A tax professional can help you with determining if you have any tax liability.

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts


Lisa Webber


With over 10 years full-time experience as a Realtor in the Central to Southern Maryland area, I can answer questions pertaining to buyers and sellers of residential property in the state of Maryland. I also enjoy sharing information about real estate in general when I can. I work with first-time buyers, real estate investors, luxury home buyers and move-up buyers. I represent buyers when they are looking for new construction as well. I can help with relocation questions as I help people from all over the country move to Maryland. I also work with military families, helping them move to the Ft. Meade area. With many years of experience helping clients purchase distressed properties like foreclosures and short sales, I am well-suited to look for and point out any potential problems that you might face. I can help with finding financing through many local experts as well. I continually post real estate related information on our Facebook page as well as on our website,


I've worked with many buyers and sellers of residential property throughout the state of Maryland as well as investors who buy and sell residential and commercial properties.

I primarily have studied real estate, business, advertising, and marketing and study each of these subjects on a daily basis as they relate to my work. I read real estate books and subscribe to news services to keep current on real estate subjects and trends.

©2016 All rights reserved.