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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:
  1. In the
    Personal Sale
     folder, go to the
    Home
     screen.
  2. Enter a
    Description
     to identify the property sold.
  3. Don't select the
    Electing to pay tax on entire gain
     field.
  4. If Form 1099-S was issued for the sale, select the
    Report on Form 8949 if not required
     field.
  5. Enter the date acquired, date sold, selling price, expense of sale, and basis.
  6. Select the
    Surviving spouse that qualifies for the full exclusion
     field it it's applicable.
  7. If Form 1099-S was issued with a Box 6 amount, enter a code in the
    Buyer's part of real estate tax code
     field and enter the Box 6 amount in the
    Amount from Form 1099-S, Box 6
    .
    note
    Enter information about the use and ownership tests. Either enter
    X
     in the
    Meets use and ownership test without exceptions
     field or use the other fields in the
    Exclusion information
     section 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 the
    Report on Form 8949 if not required
     field. 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 the
      Form 8949 Proceeds
       column.
    • Expenses are reported as a negative amount in the
      Amount of adjustment
       column.

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