A taxpayer typically owns only one primary residence or main home at a time, and if they sell that home they may be able to exclude a portion of the capital gain from tax. In TaxSlayer Pro, the exclusion is calculated on the Sale of Main Home Worksheet. Click here for more information about completing the worksheet in TaxSlayer Pro.
If they own and reside in more than one residence, they will need to determine which is their main home based on the facts and circumstances. IRS Publication 523, Selling Your Home, provides guidance in determining which home is the main home should there be a question.
A return can include the sale of two main homes, however, when the taxpayer and spouse married during the tax year and both sold their respective primary residences in the tax year. To enter two sale of main home worksheets to the TaxSlayer program, from the Main Menu of the tax return (Form 1040) select:
- Income
- Capital Gain/Loss (Sch D) - Click the Other button.
- Sale of Main Home Worksheet
- Enter the Taxpayer data - Date and Price, Purchase Date and Price and number of days each spent in the home.
- Schedule D - Sale of Home Worksheet menu - Select Taxpayer as the worksheet owner
- Return to the "Other" menu in the Capital Gain/Loss Transactions menu - select the Spouse's Sale of Home Worksheet and complete data entries for the Spouse
- Schedule D - Sale of Home Worksheet menu - Select Spouse as the worksheet owner
Note: This is a guide on entering the sale of two main homes in the TaxSlayer Pro program. This is not intended as tax advice.
Additional Information:
IRS: Publication 523 - Selling Your Home
IRS: Instructions for Form 8949
Desktop: Excluding the Sale of Main Home
Desktop: Form 8949 - Sales and Dispositions of Capital Assets