Tax Slayer entry:
Federal Section > Income > Capital Gain and Losses (Schedule D) > Sale of Main Home Worksheet
- WARNING – Do not use the worksheet if there is no tax consequence for the sale. If Form 1099-S is issued, it must be reported and at this time, the worksheet does not properly carry the transaction to the Form 8949.
- The taxpayer must provide additional information for a complete entry in the worksheet such as purchase price and date, improvements made that affect the basis, and use of the home within the past 5 years.
- Sale of business property or a home that was used for rental or business is OUT OF SCOPE .
- Installment Sales Income (Form 6252) and Like-Kind Exchanges (Form 8824) are OUT OF SCOPE .
- See the Schedule D resource page for more information about entering home sale data and offsetting losses (which cannot be taken).
- If the taxpayer has already paid the real estate tax for the period that includes the sale date, subtract the amount in box 5 from the amount already paid to determine their deductible real estate tax.
- If the taxpayer has already deducted the real estate tax in a prior year, report this amount as income on 1040 line 21.
- See the Buying and Selling a Home web page for items on the HUD-1 statement that affect basis or may be deductible.