Sale of a home

[JORGE123]

What am I doing wrong? 

Completed return and client had a refund of $7K

Then added Form 1099-S under schdl D as well as all details of old home purchase and old home sale on the home sale worksheet.  Now shows a refund of $2K.   What am I doing wrong?

Married client sold their primary home where they lived for 10 years. After dust settled had a capital gain of $60K, they used that money to buy another property (main home) within 3 months.

I thought they would qualify for the $500K home sale exclusion......

Please help

[jeffmcpa2010]

Dont put anything on Schedule D - Use the home sale worksheet. It should (Havent tried it for this year yet) add the entry to 8949 and show the exemption code and adjustment (Column F and G) to show the gain is exempt.

[Just-Lisa-Now-]

Did you use the HomeSale Worksheet for the sale of the main home?  Thats where you'll find the IRC121 exclusion. 

Dont use Sch D, the Homesale worksheet will transfer the needed info to Sch D for you.

[ljr]

use home sale worksheet not schedule D and answer all the questions 

[JORGE123]

Thanks for the response.  I did use the home sale worksheet to input all the information.  That information populated schdl D as well as the 8949.   Form 8949 shows code E under column f.   As proof, I saved the file then deleted the pages related to the sale of the home and the refund goes back to $7K.   I just don't understand if the gain on the sale is is $60K and the home exclusion is $500K, why is the refund less? 

[Just-Lisa-Now- · Accepted solution]

Did you go through all the questions on the homesale worksheet and mark the boxes where it asks if the client wants to use the  home sale exclusions?  Its Part II, questions 9-13

[Skylane]

   

 

 

[JORGE123]

Wow Wow Wow !!!     Thanks so much....   Wow ...   I so much appreciate your time, guidance and efforts.   You are heaven sent, this fixed the issue.   Thank you.    Having the forms as a guidance really helped.  I had everything , except the marking/choosing some of the boxes on the Home Sale Sheet.   I owe you a drink for sure 😂.   When ever you are in Miami, pls let me know so I can make good on that drink. 

Thank you again sooooooo much!!!    I have been at this for over 3 days.  Thank you 🙏