Data entry for Section 121 exclusion
UltraTax CS populates the Sale of Home Worksheets in
Forms
view, then the HomeSale
folder, when you follow this process.To calculate the Section 121 exclusion of gain on the sale of a personal residence:
- In thePersonal Salefolder, go to theHomescreen.
- Enter aDescriptionto identify the property sold.
- Don't select theElecting to pay tax on entire gainfield.
- If Form 1099-S was issued for the sale, select theReport on Form 8949 if not requiredfield.
- Enter the date acquired, date sold, selling price, expense of sale, and basis.
- Select theSurviving spouse that qualifies for the full exclusionfield it it's applicable.
- If Form 1099-S was issued with a Box 6 amount, enter a code in theBuyer's part of real estate tax codefield and enter the Box 6 amount in theAmount from Form 1099-S, Box 6.noteEnter information about the use and ownership tests. Either enterXin theMeets use and ownership test without exceptionsfield or use the other fields in theExclusion informationsection to reduce the exclusion amount.
Partially taxable gain
The gain, exclusion, and taxable gain on the sale calculated on the Sale of Home worksheet reports on Form 8949 with code H.
The entire gain is excluded
Fully excluded gains aren't required to be reported on the tax return unless a 1099-S was issued for the sale.
- If there wasn't a Form 1099-S, the gain only appears on the Sale of Home Worksheets.
- If there is a Form 1099-S, you need to select theReport on Form 8949 if not requiredfield. After you select the field:
- UltraTax CS reports a loss by completing Form 8949 columns (a) through (e), entering an L in column (f), the loss in column (g), and a zero in column (h).
- The selling price of home amount is reported in theForm 8949 Proceedscolumn.
- Expenses are reported as a negative amount in theAmount of adjustmentcolumn.
