Reporting Gain or Loss on Your Home Sale:
Determine whether you need to report the gain from your home.
You need to report the gain if ANY of the following is true.
• You have taxable gain on your home sale (or on the residential portion of your property if you made separate calculations for home and business) and don’t qualify to exclude all of the gain.
• You received a Form 1099-S. If so, you must report the sale on Form 8949 even if you have no taxable gain to report. See Instructions for Form 8949 and Instructions for Schedule D for more details.
• You wish to report your gain as a taxable gain even though some or all of it is eligible for exclusion.
If NONE of the three bullets above is true, you don’t need to report your home sale on your tax return
If you received Form 1099-S and must report the sale of the principal residence on the return Form 8949, then you would enter the information of the adjusted cost basis and the selling price and then use the adjustment code of H for exclusion of gain on sale of home in column f.
For additional information, please refer to the IRS Instructions for Form 8949:
IRS Instructions for Form 8949
