MikeDemler,
I've put in a request to enhance the home sale interaction to allow 8949 code H adjustment to the gain. The best workaround I can come up with is to first enter the home sale as given on the 1099-S and then immediately go to the Stocks & Bonds sales area and input an entry with no financial institution and a description "1099-S adjustment" . You then put in zeros for the sales and cost basis and continue on until you reach the screen which shows an option that some or all of the gain belongs to someone else. Enter the amount of gain to remove as a negative number. On the LT 8949 I was able to see the two entries together under checkbox F for long term not reported on 1099-B. The code for the adjustment is shown as N rather than the correct H, but the information is there at a glance for the IRS to see.
