The sale of your fathers home may not need to be reported if your father meets all of the exclusion tests for the gain on the sale of his home, and he did not receive a 1099-S. (If he received a 1099-S, the sale must be reported, but he may still claim the exclusion if he qualifies.)
The exclusion tests are:
- Gain on the home (Sales price less adjusted basis) is less than $250,000 ($500,000 if married filing jointly)
- Has lived in and owned the home for at least 24 of the 60 months preceding the sale (does not need to be continuous)
- Has not claimed a home sale exclusion in the past 2 years
- Did not acquire the home in a like kind exchange
So long as all of these requirements are met and he did not receive a 1099-S, your father is not required to claim the sale on his tax return. However, I do advise claiming it anyway in order to establish that he is in fact taking the exclusion.
Any amount of gain that does not qualify for the exclusion will be taxed as a capital gain.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
