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Report proceeds from real estate transactions on IRS Form 1099-S Proceeds From Real Estate Transactions. Where you report information on the form depends on how you use the property: main home, timeshare/vacation home, investment property, business, or rental.

Follow the steps below to report your real estate proceeds.

Reporting the sale of your main home:

  1. From within your TaxAct® return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  2. Click Investment Income to expand the category, then click Gain or Loss on the Sale of Investments
  3. Click Sale of your main home
  4. The program will proceed with the interview questions for you to enter the appropriate information.

Reporting the sale of a timeshare or vacation home:

A timeshare or vacation home is considered a personal capital asset and the sale is reported on Schedule D. A gain on such a sale is reportable income. If you incurred a loss on the sale, the IRS doesn't allow you to deduct the loss.

An inherited property 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 enter a cost equal to the sale price so that the gain/loss reported is zero (0).

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  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 Form 1099-B 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.

Reporting the sale of an investment property (reportable on Schedule D):

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  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 Form 1099-B 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.

Reporting the sale of business property (reportable on Form 4797 and Schedule D):

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  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 until you reach the Business Income - Depreciation (or Farm Income - Depreciation, if applicable) screen, then click Yes
  4. Click No (if the asset was acquired before 1987), then Continue
  5. Click Yes on the Business Income - MACRS Depreciation - Assets (or Farm Income - MACRS Depreciation - Assets) screen
  6. Choose Quick Entry or Step-by-Step Guidance
    1. If you choose Quick Entry, enter the applicable information in the window that appears (ensuring that you enter a date sold)
    2. If you choose Step-by-Step Guidance, the program will proceed with the interview questions for you to enter the appropriate information

If the property never depreciated:

These navigation steps apply only if you previously depreciated the property that was sold. If the property was never depreciated, continue past the Amortization and Depletion screens and click yes on the Asset Sale - Assets Sold screen.

Reporting the sale of rental property (reportable on Form 4797 and Schedule D):

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  2. Click Rent or Royalty Income to expand the category, then click Real estate rental income
  3. Click +Add Federal Schedule E to create a new copy of the form, or Review to review one already created
  4. Continue until you reach the screen titled Rental Income - Depreciation, then click Yes
  5. Click No (if the asset was acquired before 1987)
  6. Click Yes on the Rental Income - MACRS Depreciation - Assets screen
  7. The program will proceed with the interview questions for you to enter the appropriate information

If the property never depreciated:

These navigation steps apply only if you previously depreciated the property that was sold. If the property was never depreciated, continue past the Amortization and Depletion screens and click yes on the Asset Sale - Assets Sold screen.

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