sec 121 residence sale

[RWG1950]

Been awhile since I've had one of these. My software used to have an entry area for this but can't find it now.
Customer's (MFJ) sold their decades-long residence on 7-1-23 for $405-K.
They don't know if they received a 1099-S or not.
Do we simply identify this as a "sec. 121 house", put the $405-K amount on "D" and show an offsetting $405-K for cost basis ?
Thanks for comments.

[Lion]

Data entry is going to be software-specific. What software do you use?

[Uncle Sam]

Sale of Residence reporting can take a variety of forms, depending upon your software.
In Drake, there is an internal form that reports sale of residence by disclosing same information as you ordinarily would on a Schedule D format, but in addition to dates cost/sale numbers, you need to list
initial cost, separate line for major improvements, separate line for closing costs, and you need to provide number of days in last 5 years owned, and number of days in last 5 years used as principal residence.
I suggest that you go into your software program and in the research field, type in "Sale of Residence"

[Rapid Robert]

"Do we simply identify this as a "sec. 121 house", put the $405-K amount on "D" and show an offsetting $405-K for cost basis ?"

No.

When all else fails, read the instructions. You will need to check Box F on Form 8949 Part II, and use adjustment code H, and also possibly E.

Here is an example from the instructions that is close to your scenario:

"You sold your main home in 2022 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)."