- Membership
- Certification
- Events
- Community
- About
- Help
1099 reporting of land purchase option payment
January 15, 2024
Q. We made a payment for an option agreement to potentially purchase a property. Is this reportable? And if so, which form? We have 18 months to make the decision to purchase.
A.
(Answered by IOFM's third-party tax experts)
No, this payment for the option to purchase real estate is not Form 1099 reportable. Eventually, after your company takes one action or the other (to purchase or not purchase), if the land is purchased the option amount rolls into the purchase so look to Form 1099-S…
Become A Member
Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!
Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.
Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.
What are you waiting for?
