Report section 121 exclusion on the sale of a personal residence

Follow these steps to report the sale of a personal residence with a section 121 exclusion for an estate or trust.

Go to the

Income

screen in the Income
folder and select the statement button for Capital gains or (losses)
.

Enter the sale information for the personal residence in 1 row.

Add another row for the Section 121 exclusion with the same date acquired and date sold.

Select H Sold or exchanged main home at a gain
from the dropdown in the Adj Code
column.

Enter the amount you calculated for the Section 121 exclusion in the Adj to Gain/Loss
column.

Review Form 8949 and Schedule D for accuracy, and make any necessary adjustments in the Capital gains (losses)
statement.