The “death and taxes” line is overdone so we’ll just say that you can’t escape IRS filings no matter what your business is. Real estate practices might file the HUD 1 settlement statement right away but put off the important follow-up document, the 1099-S. Use Easy HUD to make 1099-S filing a breeze.
Do You Need To File?
Although it doesn’t hurt to file a 1099-S, there is no reason to do so if you are exempt. The IRS list reasons a real estate transaction doesn’t have to be reported and real estate professionals should be familiar with these rules. A very short version of the rules is that if the transaction was less than $250,000 (or $500,000 for a married couple) then the sale doesn’t have to be reported. There are a few more provisions so be sure to read the IRS rules before deciding a sale is exempt.
The tax people aren’t going to take your word for it but you can use the RESPA software to complete and print out an 1099-S exemption form for your records.
Filing a Paper Form
Many real estate professionals choose to do their 1099-S forms all together at the end of the year, and then end up dreading the task. They have to dredge up old records and fill out the forms to be mailed all at once. While this is allowed, it’s not the most efficient method. Why not fill out the 1099-S while the information is fresh in your mind? Easy HUD real estate title software pulls relevant information out of the case file so you can easily print and mail off the form as soon as the sale is finalized. You get it out of your way and move on to the next deal.
However paper forms are just so 2003. We live in the internet age, so why not file the forms electronically?
Don’t bother with the inconvenience of printing a 1099-S and then mailing it off, not knowing if it will arrive or not. Use Easysoft Legal Software HUD settlement statement software to file the form through our electronic 1099-S service. File with one click and get a confirmation number within seconds so you know your form has been received. The service is simple to use and inexpensive, and once you’ve tried it you’ll wonder how you lived without it.
Streamline your tax filings to speed up closing and reduce paperwork. If you aren’t using Easysoft Legal Software attorney practice management software already then try a free demo to explore all the features of our software.