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Are you asking if you need to provide a 1099 and submit a 1096 for the purchase of 1/2 the interest in a cottage from your sister and brother in law?
You do not need to submit this form.
If you use a title company they will submit tax paperwork to your sister and brother in law, but if you are doing this all personally you are not required to give the 1099 to them.
A form 1099-S would be required, but your title company will take care of that. If not, then the mortgage lender would be responsible. If there is no title company and no mortgage lender then the transferor's broker is responsible. If you don't have a broker, then the transferee's broker is responsible. If no broker there either, then the transferee is responsible. The transferee is the person receiving the funds.
You can refer to the following link for more details: http://www.irs.gov/instructions/i1099s/ar02.html#d0e231
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