Form 1099-S

Form 1099-S

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 .

Box 2:

  • See the Schedule D resource page for more information about entering home sale data and offsetting losses (which cannot be taken).

Box 5:

  • 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.