The sale of your Main Home is reported in TaxSlayer by following this path:
➡️ Federal
➡️ Income (Select My Forms)
➡️ Investments
➡️ Sale of Main Home Worksheet
The Sale of Main Home Worksheet determines whether any gain from the sale is excludable or taxable.
❓ Do I Qualify to Exclude the Gain?
🚫 Not all home sales result in taxable income. You may be able to exclude some or all of the gain if you meet IRS requirements.
✅ Maximum Exclusion
You may qualify for the Maximum Exclusion if both of the following apply:
🏡 Ownership and Use Test
- You owned and used the home as your main home for a total of 2 years out of the 5 years before the date of sale.
⏳ Prior Sale Rule
- If you excluded gain from the sale of another home within the 2 years prior to selling this home, you cannot claim the exclusion again.
➗ Reduced Maximum Exclusion
✅ You may still qualify to exclude a reduced amount of gain even if you do not meet the full 2‑year ownership and use requirement.
You generally qualify for a Reduced Maximum Exclusion if the primary reason for the sale was:
💼 Because you changed your place of employment
❤️ Because of health issues
⚠️ Because of unforeseen circumstances
📌 The reduced exclusion is calculated based on how much of the 2‑year requirement was met.
🧮 Sale of Main Home Worksheet – Adjustments
This section is where you enter costs that affect your basis (what you invested in the home) or your selling price. These adjustments can reduce or eliminate taxable gain.
🏠 Purchase‑Related Adjustments
(Fees you may have paid when you bought your home – these generally increase basis)
🧾 Legal fees - Attorney fees paid to purchase the home
📐 Surveys - Property or boundary surveys required for purchase
🛡️ Title insurance - Owner’s title insurance (not lender’s title insurance)
🤝 Fees that the seller owed that you agreed to pay - Seller’s unpaid taxes or closing costs you paid on their behalf
➕ Other fees - Other purchase‑related closing costs directly tied to acquiring the home
📂 Abstract and recording fees - Title searches and deed recording fees
🏷️ Transfer or stamp fees - State or local transfer or documentary stamp taxes
🔧 General Adjustments
💰 Selling expenses
- Real estate commissions
- Legal fees for the sale
- Advertising and listing costs
🏗️ Cost of additions and improvements
- Room additions
- New roof or HVAC system
- Kitchen or bathroom remodels
🛣️ Tax assessments for local improvements
- Sidewalks, streets, or other permanent local improvements
📈 Other increases to your basis
- Impact or connection fees
- Restoration costs from casualty losses (if not reimbursed)
📉 Decreases to your basis (Increase gain)
- Casualty loss deductions already claimed
- Insurance reimbursements
- Certain energy credits previously taken
❌ Can I Take a Loss If the Home Sold for Less Than What I Paid?
🚫 No. The IRS does not allow a loss deduction for the sale of personal‑use property, including your main home.
⚠️ Even if:
- The home sold for less than the purchase price, or
- You did not qualify for an exclusion
➡️ The loss cannot be claimed or reported on the tax return.