Reporting the Sale
Use Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses (PDF) and Form 8949, Sales and Other Dispositions of Capital Assets (PDF) when required to report the home sale.
Refer to Publication 523 for the rules on reporting your sale on your income tax return.
Do you have to report the sale of a house on taxes?
You generally need to report the sale of your home on your tax return if you received a Form 1099-S or if you do not meet the requirements for excluding the gain on the sale of your home. No portion of the residence was used for business or rental purposes by you or your spouse.
Do you always get a 1099 when you sell a house?
When you sell your home, federal tax law requires lenders or real estate agents to file a Form 1099-S, Proceeds from Real Estate Transactions, with the IRS and send you a copy if you do not meet IRS requirements for excluding the taxable gain from the sale on your income tax return.
What is the penalty for selling your house before 2 years?
Capital gains tax can generally be avoided when selling a home, since sellers can write off up to $250,000 in capital gains tax (or $500,000 for couples), so long as they’ve lived in their home for two years or more.
Does selling a house count as income?
If you qualify, you do not need to report the sale of your home on your tax return and it won’t count towards your income. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.