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Can someone tell me which form to use to report the sale of a home (homestead) lived in more than two years ? Thanks

Ken
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Can someone tell me which form to use to report the sale of a home (homestead) lived in more than two years

If there's no taxable gain, you don't report it anywhere. Otherwise, Schedule D, line 8.

Phil Marti
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Hi Phil :

Thanks for the reply.

The title company reports the sale amount to the IRS. In my situation there is a gain, but it is below the $500,000 exemption. So, if I understand correctly it reported on Sch D, line 8 and not on some special form. Thanks.

Ken
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The title company reports the sale amount to the IRS. In my situation there is a gain, but it is below the $500,000 exemption. So, if I understand correctly it reported on Sch D, line 8 and not on some special form.

Well, actually there's no reporting requirement for you at all, since the entire gain is excludable. See the instructions for Form 1099-S on page 18 of the 1040 instructions.

Phil Marti
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Thanks for the info Phil.

Ken
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I would report the sale of the home on schedule D. Put the gross proceeds of whatever is reported off the 1099S, and pick up as cost original purchase price, improvements, and selling expense. Then, any gain you have can be offset with a Section 121 exclusion, which you would put on the line below as a cost equal to the gain with no proceeds. That way, you've accounted for the 1099S proceeds, and are declaring a section 121 exclusion. I'm assuming that you didn't rent out your house, which would make it a sale of business property, and would require a different form (and probably more taxes).
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I would report the sale of the home on schedule D. Put the gross proceeds of whatever is reported off the 1099S, and pick up as cost original purchase price, improvements, and selling expense. Then, any gain you have can be offset with a Section 121 exclusion, which you would put on the line below as a cost equal to the gain with no proceeds. That way, you've accounted for the 1099S proceeds, and are declaring a section 121 exclusion.

I started to suggest this as a way of avoiding possible computer matching problems down the road, but changed my mind after reading the instruction I referenced earlier. I'm assuming that since they gave such a specific non-reporting instruction, the computers have been told how to deal with the absence of the 1099-S proceeds during the matching. Of course, I could be wrong.

Phil Marti
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