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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.

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 click Federal.
  2. Click Investment Income to expand, click Gain or loss on the sale of investments to expand, then click Sale of your main home.
  3. 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 Capital Gains or Losses. 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 click Federal.
  2. Click Investment Income to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new form or click Edit to review a form already created.
  4. 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 click Federal.
  2. Click Investment Income to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new form or click Edit to review a form already created.
  4. 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 Sales of Business Property 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 click Federal.
  2. Click Business Income to expand, then click Business income or loss from a sole proprietorship (or Farming income or loss, if applicable).
  3. On the screen titled Business Income - Depreciation (or Farm Income - Depreciation, if applicable), click Yes.
  4. Click No if the asset was acquired before 1987, then click Continue.
  5. Click Yes on the screen titled Business Income - MACRS Depreciation - Assets (or Farm Income - MACRS Depreciation - Assets).
  6. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.

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 screen titled Asset Sale - Assets Sold.

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 click Federal.
  2. Click Rent or Royalty Income to expand, then click Real estate rental income.
  3. Click + Add Schedule E, Pg 1 to create a new copy of the form, or click Edit to review one already created.
  4. On the screen titled Rental Income - Depreciation, click Yes.
  5. Click No if the asset was acquired before 1987.
  6. On the screen titled Rental Income - MACRS Depreciation - Assets screen, click Yes.
  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 screen titled Asset Sale - Assets Sold.

Related Links

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.


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