How Do I Report Sale of Main Home on Schedule D?
While it is not required to report the sale of your main home on your tax return unless some of the gain from the sale is taxable, some people may still want to report the sale to the IRS.
If you received a Form 1099-S, Proceeds from Real Estate Transactions, and all of your gain from the sale is excluded, you can show the sale and the exclusion on your tax return so the IRS will see that the sale of your home was excluded. Keep in mind that this property cannot be a rental or vacation property.
The sale of your main home will be reported on Schedule D showing the gain (or loss that is limited to zero) reported on one line and the exclusion showing on the next line as a negative number.
To include the sale on Schedule D, check the box that asks, "Include my sale of home on my return." when entering the information about your home sale.