Use Form 1099-S Proceeds From Real Estate Transactions to report proceeds from real estate transactions. How the property is used (personal, investment, business) will determine where the information is reported.
Follow the steps below to report real estate for personal, investment, or business use.
For more information, see IRS Instructions for Form 1099-S.
If the 1099-S was for the sale of your main home, complete the sale of home questions under the investment income topic in our program to see if any amounts are taxable.
To report the sale of your main home:
Note. Be sure to check the box indicating you received a Form 1099-S so the transaction is transferred to the applicable forms/schedules within your return.
The IRS doesn't allow you to deduct a loss from personal-use property. If you checked Check here if you received a Form 1099-S, the sale of home transaction will be reported on Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D Capital Gains and Losses. TaxAct will automatically adjust the loss to zero (0) using Adjustment Code "L."
Don't report the sale of your main home on your tax return unless your gain exceeds your exclusion amount. Refer to IRS Publication 523 Selling Your Home for information on the sale of your home, the ownership and use tests, and the exclusion amount.
If the 1099-S was for a timeshare or vacation home, it's considered a personal capital asset to you and the sale is reportable on Federal Form 8949 and Schedule D.
A gain on this sale is reportable income. The IRS doesn’t allow you to deduct a loss since it’s personal-use property. The same would be true for inherited property if it’s a personal capital asset. Select "Adjustment Code L" so the loss is disallowed on the return.
In this case, the capital gain or loss is reported on Form 8949 and Schedule D, and the loss is allowed. See the Reporting real estate for investment use: section below.
Generally, your basis in property you inherited from a decedent is the fair market value at the date of the person's death. For more information, refer to IRS Publication 551 Basis of Assets.
If Form 1099-S was for investment property (or inherited property considered investment property), the sale is reportable on federal Schedule D:
If Form 1099-S was for the sale of business or rental property, then it's reportable on Form 4797 Sales of Business Property and Schedule D:
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.