Artículo Form 1099-S.. Form 1099-S.

id="en_US_2025_publink1000173178"> Form 1099-S. For certain sales or exchanges of real estate, the person responsible for closing the sale (generally, the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears in box 6 of Form 1099-S. The buyer deducts this amount as a real estate tax, and the seller reduces their real estate tax deduction (or includes it in income) by the same amount. See Refund (or rebate) , later. Taxes placed in escrow. If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. You can deduct only the real estate tax that the third party actually paid to the taxing authority. If the third party doesn’t notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. Tenants by the entirety. If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. Divorced individuals. If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. See Payments to a third party in Pub. 504 for more information. Ministers’ and military housing allowances. If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you can still deduct all of the real estate taxes you pay on your home. Refund (or rebate). If you received a refund or rebate in 2025 of real estate taxes you paid in 2025, you must reduce your deduction by the amount refunded to you. If you received a refund or rebate in 2025 of real estate taxes you deducted in an earlier year, you must generally include the refund or rebate in income in the year you receive it. However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. For more information, see Recoveries in Pub. 525. Table 11-1. Which Taxes Can You Deduct? Type of tax You can deduct You can’t deduct Fees and charges Fees and charges that are expenses of your trade or business or of producing income. Fees and charges that aren’t expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Can’t Deduct ). Fines and penalties. Income taxes State and local income taxes. Federal income taxes. Foreign income taxes. Employee contributions to private or voluntary disability plans. Employee contributions to state funds listed under Contributions to state benefit funds . State and local general sales taxes if you choose to deduct state and loc