Form 1099-S Proceeds From Real Estate Transactions is used to report proceeds from real estate transactions. Where this information is reported depends on the use of the property - main home, timeshare/vacation home, investment property, business use, or rental use.

Sale of your main home

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Investment Income to expand the category, then click Gain or Loss on the Sale of Investments
  3. Click Sale of your home
  4. The program will proceed with the interview questions for you to enter the appropriate information.

Sale of a timeshare or vacation home

The property would be considered a personal capital asset to you and the sale would be reportable on Federal Schedule D. A gain on this sale is reportable income. If you incurred a loss on the sale you are not allowed to deduct this loss since it is personal use property. For inherited property the asset may be considered investment property and the capital gain or loss would be reported on Schedule D. If you have a loss the IRS will be looking for the sale to be reported on your return, so you would enter a cost equal to the sales price so that the gain/loss reported is zero.

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Investment Income to expand the category, then click Gain or Loss on the Sale of Investments
  3. Click Capital Gain or Loss (Form 1099-B)
  4. Click Add to create a new form or click Review to review a form already created
  5. The program will proceed with the interview questions for you to enter the appropriate information.

Sale of an investment property (reportable on Schedule D)

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Investment Income to expand the category, then click Gain or Loss on the Sale of Investments
  3. Click Capital Gain or Loss (Form 1099-B)
  4. Click Add to create a new form or click Review to review a form already created
  5. The program will proceed with the interview questions for you to enter the appropriate information.

 

Sale of business property (reportable on Form 4797 and Schedule D)

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Business Income to expand the category, then click Business income or loss from a sole proprietorship (or Farming income or loss, if applicable)
  3. Continue through the interview screens until you reach the screen titled Business Income - Depreciation (or Farm Income - Depreciation, if applicable), then click Yes
  4. Click No (if the asset was acquired after 1987), then Continue
  5. Click Yes on the screen titled Business Income - MACRS Depreciation - Assets (or Farm Income - MACRS Depreciation - Assets)
  6. Select Quick Entry or Step-by-Step Guidance
    1. If you select Quick Entry, enter the applicable information in the window that appears (ensuring that you enter a date sold)
    2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter the appropriate information

Please note: These navigation steps only apply if you previously depreciated the property that was sold. If the property was never depreciated, you will want to continue past the Amortization and Depletion screens and click Yes on the screen titled Asset Sale - Assets Sold.

Sale of rental property (reportable on Form 4797 and Schedule D)

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Rent or Royalty Income to expand the category, then click Real estate rental income
  3. Click Add to create a new Schedule E, or Review to review a Schedule E already created
  4. Continue through the interview screens until you reach the screen titled Rental Income - Depreciation, then click Yes
  5. Click No (if the asset was acquired after 1987)
  6. Click Yes on the screen titled Rental Income - MACRS Depreciation - Assets
  7. Select Quick Entry or Step-by-Step Guidance
    1. If you select Quick Entry, enter the applicable information in the window that appears (ensuring that you enter a date sold)
    2. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter the appropriate information

Please note: These navigation steps only apply if you previously depreciated the property that was sold. If the property was never depreciated, you will want to continue past the Amortization and Depletion screens and click Yes on the screen titled Asset Sale - Assets Sold.


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