Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Capital Gain or Loss Workout

Sale of Main Home


This section discusses reporting the sale of a taxpayer's main residence.

You will need to know if the home was the taxpayer's main home, if the taxpayer meets the ownership and use tests, and if the gain is more than the allowed exclusion.

Taxpayers must report the sale of a home when one of the following is true:

  • The taxpayer does not meet the ownership test
  • The taxpayer does not meet the use test
  • During the two-year period ending on the date of the sale, the taxpayer excluded the gain from the sale of another home
  • The taxpayer has a gain and does not qualify to exclude all of it
  • The taxpayer has a gain and chooses not to exclude it
  • The taxpayer received Form 1099-S

For additional information to help you make this determination, refer to the Selling Your Home Chapter in Publication 17 or Publication 523.

Schedule D section for Long Term Capital Gains and Losses.