I've had folks sell property and when you ask them whether or not they got a 1099 and they say "no"  I proceed to open the paperwork for the sale and there sits the 1099 that they never received.  I have to be honest though, I tend to report them only when I see a 1099 or I think the client probably received one.    The local closing companies are pretty good about not generating 1099s when the homes qualify for the exclusion.   But then again, I don't see a lot of million dollar house sales here ------------------------- housing is a little more affordable here than in CA.