Received 1099-S. The sales is for personal home and business shop. Home is eligible for home exclusion. Do I show allocation as an attachment?

[TaxGuyBill · Accepted solution]

There is no need to attach a statement, the IRS won't read it anyways.  The "business shop" is a separate building, right?

If you report amount on the 1099-S as the sales price of the home, would the home be fully excluded?  If so, that is what I would probably to to avoid an IRS notice.  That way, the IRS will 'see' the full amount of the 1099-S on Form  8949/Schedule D.  You would use the "Home Sale Worksheet" to report the sale of the home.

Then just report the sale of the business shop as usual, which is usually by the disposition area of the Asset Entry Worksheet.

[Skylane]

Even if the building is mixed mercantile (shop and home in one structure) you can do what TGB says.

[TaxGuyBill]

If it is all one building, it may all qualify for the exclusion (I would need to look up the specifics on that though).