It depends. I created a scenario in my CD software just like you mentioned and here were my results. I used your second option that you listed above, which is the correct and only way to report this.
- First of all, there is a screen that informs you that since you have a lose, you do not need to include the sale in your tax return but if you wish to include it anyway, then indicate with a check mark.
- The 8949 that I generated shows $150,000 in line D, $155,000 in line E, $5000 Line G, and 0 in line h. The $11,000 is reflected in the $155,000 in line E, which is your basis. ($144,000 + $11,000).
It appears that Line D and line E are correct. Line F should have a Code L and Line G should have a $5000 adjustment. Line H is zero.
What i think happened with you is that you tried the third option, which was incorrect and that is why your 8949 is incorrect. you need to go to federal>wages and income>investment income>stocks and bonds and other and delete the entry you made. In addition, unless you get the results that I mentioned above, you might delete your home sale and then reenter the information. The 8949 that will be created will or should be correct. Just remember on the 8949, the $11,000 expenses will be added on the basis creating a loss and then the adjustment in line G.
Using you third step listed, the program thought this was a stock sale thus was allowing a $5000 loss. This is incorrect.
[ Edited 02/25/22|02:00 PM PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
