- December 31, 1997
- All Stewart Title Owned Offices and Agents in Colorado
- 1099-S Reporting Requirements
Please be aware of the upcoming changes in the 1099-S Reporting Requirements. The "Taxpayers Relief Act of 1997" signed by the President on August 5, 1997, modifies both capital gains treatment for sales of principal residences and Form 1099-S reporting requirements. An update issued by the American Land Title Association regarding these changes is available through the Colorado District Office. The new law provides that real estate reporting persons generally do not need to file the Form 1099-S for sales or exchanges of principal residences with a sale price at or below $250,000.00 for a single individual (or at or below $500,000.00 if the seller is married) as long as the reporting person obtains a certification from the seller in a form acceptable to the Secretary of Treasury.
At this time the Treasury has not issued an "acceptable" certificate form. THEREFORE, CLOSERS MUST CONTINUE TO COLLECT THE NECESSARY INFORMATION FOR THE 1099-S FORM UNTIL SUCH TIME AS WE HAVE OBTAINED THE ACCEPTABLE FORM OF CERTIFICATE. We will provide this form to you when it becomes available.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
- Bulletins Replaced:
- Related Bulletins:
- NL000002 1099 Reporting\Charge
- NL000009 1099-S Reporting\Real Estate Transactions\Regulations Effective January 1, 1991
- NL000016 Form 1099-S Reporting
- Underwriting Manual:
- Exceptions Manual: