Most of your property is a capital asset. Examples of capital assets you need to report on your return are the sale of your main home, sale of stocks and bonds, etc. Sale of property used for business or investment is generally reported on Form 4797 rather than Schedule D unless the property was used for both personal and business use.
While you may not claim a loss on your personal property, such as your main home, you are required to report the gain on the sale. We recommend you report the sale of your main home even if you are able to claim the Sale of Main Home Exclusion. By reporting the sale, there is a reduced chance of the IRS requesting further information or adjusting your return due to the missing capital gain/loss entry.
Where to report the information?
The sale of your asset is reported as follows:
- Income - Select my forms
- Capital Gains and Losses
- Capital Gains and Loss Items
What information do I enter in the program?
You will need the purchase date and price as well as the sale date and price for your capital assets. The information needed is generally contained on your 1099-S or 1099-B form.