No. of Recommendations: 2
You report the gain on Sch D just like a stock transaction.

If you meet the requirements for the exemption, you also claim it on Sch D.


Close, but it needs to be reported on Form 8949 first, which will then flow through to Schedule D. The exemption is also claimed on Form 8949. From the Schedule D instructions https://www.irs.gov/pub/irs-pdf/i1040sd.pdf

You may not need to report the sale or exchange of your main home. If you must report it, complete Form 8949 before Schedule D.

and

How to report the sale of your main home. If you have to report the sale or exchange, report it on Form 8949. If the gain or loss is short term, report it in Part I of Form 8949 with box C checked. If the gain or loss is long term, report it in Part II of Form 8949 with box F checked. If you had a gain and can exclude part or all of it, enter “H” in column (f) of Form 8949. Enter the exclusion as a negative number (in parentheses) in column (g) of Form 8949. See the instructions for Form 8949, columns (f), (g), and (h). Complete all columns. If you had a loss but have to report the sale or exchange because you got a Form 1099-S, see Nondeductible Losses, later, for instructions about how to report it.

AJ
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