Support CenterHow do I enter sale of main home in SureFire?
🔍 How do I enter sale of main home in SureFire?
This guide explains how to enter a sale of a main home in SureFire depending on whether you are required to report the sale to the IRS.
⚠️ Before You Begin
Before entering the transaction, confirm whether:
- The transaction is for sale of home only and you are not required to report the sale to the IRS (gain may be excludable).
- You must report the sale (for example, you received an informational reporting document like Form 1099-S, or you cannot exclude all capital gain).
📊 Step-by-Step Guide
Step 1: If you are not required to report the sale (sale of home only)
Use this when the sale is for home only and you are not required to report the sale to the IRS.
If the transaction is for sale of home only, for which the maximum exclusion will be allowed, and you are not required to report the sale to the IRS, do not enter on Sch D, page 1. Instead, report the amount on the Sch D Wkt 2 only, in the section for sale of home.
If you check 16a as a yes on the Schedule D worksheet, also review line 17 in this section, to ensure that the taxpayer gets the maximum exclusion.
To determine if taxpayer gets the maximum exclusion, review the IRS instructions for sale of main home.
Step 2: If you must report the sale of your home
Use this when you must report the sale to the IRS.
Additional information:
If you must report the sale of your home, do the following in SureFire:
- Add the form 8949 to the return, link from 8949, part II to the capital gains worksheet.
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On the Capital gains worksheet:
- Fill in the code for the 1099 column (select from list of letter codes and meaning at top of page)
- Under the Column (b) date acquired or If the property was inherited, type inherit as the date acquired
- Enter the date sold, selling price and cost or other basis
- Enter code H in box F. (you can review the form 8949 instructions for the meaning of the codes)
- Enter the amount of gain to be excluded as a negative number on Column g.
- Confirm the flow to Schedule D: This will flow the sale to the Sch D. You can also complete Sch D Wkt 2.
Please also note that while the taxpayer may not be required to report the sale due to gain is excludable from income, see the topic Reporting the Sale
📝 Reporting the Sale
Reporting the Sale - https://www.irs.gov/taxtopics/tc701
If you receive an informational income-reporting document such as Form 1099-S, Proceeds From Real Estate Transactions (PDF), you must report the sale of the home even if the gain from the sale is excludable. Additionally, you must report the sale of the home if you can't exclude all of your capital gain from income. Use Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses (PDF) and Form 8949, Sales and Other Dispositions of Capital Assets (PDF) when required to report the home sale. Refer to Publication 523 for the rules on reporting your sale on your income tax return.
📝 Qualifying for the Exclusion
Qualifying for the Exclusion - https://www.irs.gov/taxtopics/tc701
In general, to qualify for the Section 121 exclusion, you must meet both the ownership test and the use test. You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to Publication 523 for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year.
📞 Still Need Help?
If you are having trouble, contact our support team:
Phone: 1-800-516-9442
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