I work for a company that owns a bunch of rental real estate. Last year, they purchased a house for cheap and had it moved to land the business already owned to replace a rental house that had burned down. The house was so cheap, that it was a cash transaction with no attorney involved and no land was purchased, just the house. Do we send the seller a 1099 (I would think so) and do we report it on 1099-MISC as box 3 "other income" or box 7 non-employee compensation? It doesn't seem like it should be subject to self-employment tax. Or do we use 1099-S even though no LAND was involved (I'm thinking no). Any help would be greatly appreciated!
The seller may issue a 1099S to YOU for the sale...you dont 1099 anyone for something that you buy.
The company that transported the house for you may need to be issued a 1099MISC for their services though.
With no attorney involved, it would probably be you that is required to send the 1099-S to the seller. If it was a residential home, the 1099-S only has to be filed if the sale was over $250,000. This is the case if the seller qualified for home exclusion.
If previous owner held property as business or investment property then you are required to send 1099-S. And yes a building qualifies as real estate as well as land bought. Do not send them a 1099-MISC because seller is probably not in the business of selling old cheap houses.