MAIN Home Gain Exclusion

[pm-zz]

Main Home sold for 1,300,000 less selling expenses $80,000) so amount realized is 1,220,000

Adjusted Cost Basis 795,000

Realized Gain is $425,000

Proseries is showing 1,300,000 less 795,000 and Adjustment of 505,000 EH Gain "0"   Seems odd to show the exclusion of more than the $500K and given that the IRS is less than optimal when looking at returns(i.e. they don't even understand many of the line items on a return they process).

The Home Worksheet calculates everything with the true realized gain - wondering if any adjustments need to be made for presentation purpose to keep the IRS from asking questions when there is nothing there?

[TaxGuyBill · Accepted solution]

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@pm-zz wrote:

505,000 EH Gain "0"   

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"E" and "H".  That is two codes, which is why it is adding them together.

[Just-Lisa-Now-]

something does sound amiss.

Id delete the Home Sale worksheet, make sure Sch D is clear, then start over....but Im overworked and need sleep, so many Im missing something obvious.

[TaxGuyBill]

More than one code.

If you entered more than one code in column (f) on the same row, enter the net adjustment in column (g). For example, if one adjustment is $5,000 and another is ($1,000), enter $4,000 ($5,000 − $1,000).

Example.

You sold your main home in 2021 for $320,000 and received a Form 1099-S showing the $320,000 gross proceeds. The home's basis was $100,000. You had selling expenses of $20,000 that weren’t included on your Form 1099-S. Under the tests described in Sale of Your Home in the Instructions for Schedule D (Form 1040), you can exclude the entire $200,000 gain from income. On Form 8949, Part II, check box F at the top. Complete columns (a), (b), and (c). Enter $320,000 in column (d) and $100,000 in column (e). Enter “EH” in column (f). In column (g), enter $220,000 ($20,000 selling expenses + $200,000 exclusion) as a negative number. Put it in parentheses to show it is negative. In column (h), enter -0- ($320,000 − $100,000 − $220,000). If this is your only transaction on this Part II, enter $320,000 in column (d) on line 10 of Schedule D (Form 1040), $100,000 in column (e), ($220,000) in column (g), and -0- in column (h).

https://www.irs.gov/instructions/i8949#en_US_2021_publink59421zd0e1936

[rbynaker]

Sounds right to me, I wouldn't make any further adjustments.

[pm-zz]

You're right, everything is correct - that column is listed as Adjustment - which is carrying over correctly.  

Thanks

[Camp1040]

Whenever I have had  a home sale exclusion with a 1099-S involved my results are similar  to OP as far as 2 codes, The 121 exclusion was applied and the numbers checked I let the returns fly or efile.