Sale Of Personal Residence

[gman]

When taxpayer receives a 1099 s for sale of personal residence is it correct to show it on
Sch D with cost and sales price the same to show no profit --and maybe a note saying
personal residence(assuming all qualifications are met.) What is your practice --sch D
or attaching a worksheet.

Thanks

[KBTS]

If they receive a 1099-S, I report it on Schedule D with the correct proceeds and basis and then back off the gain on the second line with the description "Section 121 Exclusion." Your tax software may do this for you - Proseries does.

[thomtax]

Sch D and worksheet

I usually go through the worksheet for home sale exclusion amount. Then, on Schedule D, I show the sale to match the 1099. If there is a profit, on the next line, I enter Sec 179 Exclusion and enter the amount of the excluded profit so that it subtracts from the profit amount on line 1. This accounts for the 1099 but creates a zero Sch. D.

LT