Updated November 7, 2026. Quick answer: On the Rev. December 2026 Form 1099-S, box 2a shows the total gross proceeds, generally the sales price, and it is the total of box 2b (cash gross proceeds) and box 2c (digital asset gross proceeds). The closing person is told not to reduce gross proceeds by the seller’s expenses, so commissions and legal fees are not taken out. The 2025 form had a single box 2.
What the seller’s copy says about boxes 2a, 2b and 2c
“Box 2a. Shows the total gross proceeds from a real estate transaction, generally the sales price. Box 2a is the total of boxes 2b and 2c.” “Box 2b. Shows the gross proceeds from a real estate transaction received in the form of cash, notes payable to you, notes assumed by the transferee (buyer), and any notes paid off at settlement.” For box 2c the copy says it shows gross proceeds “you received, or will receive, in the form of digital assets measured in U.S. dollars.” The copy also says what is left out: “Box 2a does not include the value of other services or property (other than the value of digital assets) you received or will receive.”
What the closing person puts in each box
For total gross proceeds the instructions say “Enter the total gross proceeds from the real estate transaction, generally the sales price.” The expenses rule is explicit: “Do not reduce gross proceeds by any expenses paid by the transferor, such as sales commissions, deed preparation, advertising, and legal expense.” For cash gross proceeds, a liability counts as cash: “If the transferee assumes a liability of the transferor or takes the property subject to a liability, such liability is treated as cash and is includible as part of cash gross proceeds.” Separately stated cash for personal property is outside it: the instructions list “separately stated cash received for personal property, such as draperies, rugs, or a washer and dryer” among the items that do not count as cash proceeds of the real estate.
Contingent payments, like-kind exchanges and digital assets
When the price is not fixed, “For a contingent payment transaction, include the maximum determinable proceeds.” For a like-kind exchange: “If you are reporting a like-kind exchange of property for which no gross proceeds are reportable, enter -0- (zero) in box 2a and enter an “X” in the checkbox in box 6.” Box 2c is filled in only when digital assets were received; the instructions limit the filer’s duty to cases where the filer “have actual knowledge or ordinarily would know that digital assets were received by the transferor as payment”. The digital asset detail lives in box 8.
Illustration with invented numbers
Illustration, not an IRS example, computed from invented inputs: a seller’s sale price is $400,000, paid in cash, and the seller pays $24,000 in commissions and legal fees out of the proceeds. Under the expenses rule above the closing person reports the sales price, so box 2a is $400,000 (computed from the sale price), not the amount left after costs. Box 2b is $400,000 (computed, all cash) and box 2c is $0 (computed, no digital assets changed hands). How selling costs enter your own gain calculation is outside this form; the worksheet linked below walks that through, and they are not a box 2 adjustment.
| Box | Entry | Amount |
|---|---|---|
| 2a | Total gross proceeds (computed) | $400,000 |
| 2b | Cash gross proceeds (computed) | $400,000 |
| 2c | Digital asset gross proceeds (computed) | $0 |
The numbering across form years
The 2025 form had one gross proceeds box. Its copy said “Box 2. Shows the gross proceeds from a real estate transaction, generally the sales price.” On the Rev. December 2026 form that box split into 2a, 2b and 2c:
| What the box reports | 2025 form | Rev. December 2026 form |
|---|---|---|
| Date of closing | Box 1 | Box 1 |
| Gross proceeds | Box 2 | Boxes 2a, 2b and 2c |
| Address or legal description | Box 3 | Box 3 |
| Services or property as part of the consideration (checkbox) | Box 4 | Box 6 |
| Foreign transferor (checkbox) | Box 5 | Box 7 |
| Buyer’s part of real estate tax | Box 6 | Box 4 |
| Reserved | none | Box 5 |
| Digital asset code, name, units and date | none | Boxes 8a to 8d |
Edition
This page reads Form 1099-S and the Instructions for Form 1099-S as revised December 2026, and the 2025 form for the older box numbers, all files irs.gov served on November 7, 2026 (sha256 in the kit data). Box numbers belong to the form year, so check the revision printed on your own copy before you follow a box reference.
Common mistakes
- Subtracting commissions and closing costs from box 2a to get a net figure. The instructions tell the filer not to; the gain calculation on your own return is where costs come in.
- Expecting box 2a to include furniture or other personal property sold separately for stated cash.
- Reading 2b plus 2c as extra money on top of 2a. Box 2a is the total of 2b and 2c.
- Looking for a single box 2 on a 2026 form, or for 2a on a 2025 form.
Related: Form 1099-S instructions, home sale gain or loss worksheet, and Form 4797 lines 1a to 1c.
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- Form 1099-S, Proceeds From Real Estate Transactions (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/f1099s.pdf
- Instructions for Form 1099-S (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/i1099s.pdf
- Form 1099-S (2025 revision, the layout before the December 2026 revision): IRS archived PDF (irs.gov)
Read from the IRS documents linked above on November 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.