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. For more information, go to IRS Instructions for Form 1099-S.
Reporting real estate for personal use:
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, go to our Sale of Home - Sale of Main Home FAQ. 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.
If you incurred a loss on the sale of your main home:
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.
Reporting a timeshare or vacation home (personal capital asset):
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.
If an inherited property is considered an investment property:
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 usesection below.
Proceeds for property considered to be a personal capital asset:
To report proceeds for property considered to be a personal capital asset, go to our Form 1099-B - Entering Capital Gains and Losses in Program FAQ.
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.
Reporting real estate for investment use:
If Form 1099-S was for investment property (or inherited property considered investment property), you can report this on Form 1099-B in the TaxAct program for the information to transfer to Schedule D.
If you need help reporting Form 1099-B in the TaxAct program, go to our Form 1099-B - Entering Capital Gains and Losses in Program FAQ.
Reporting real estate for business or rental use:
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.
To report real estate for business use, go to our Schedule C - Business Use of Home FAQ.
To report real estate for rental use, go to our Schedule E - Entering Rental Property in Program FAQ.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.
