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Reporting a sale of home on an individual return in ProConnect

SOLVED•by Intuit•189•Updated almost 2 years ago

This article will walk you through entering a sale of home in the Individual module of Intuit ProConnect for different scenarios. Click on the scenario that applies below to view step-by-step instructions.

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. In the Quick Entry grid, enter the following fields:
    • Description of property
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
    • Basis reported to IRS (blank=to IRS, 1=not to IRS, 2=not on 1099-B)
    • Expense of sale
  5. Click the blue Details button to expand.
  6. Click the three dots at the top of the screen and select Sale of Home.
  7. Check the box labeled Sale of home (MANDATORY to compute exclusion).
  8. Check the box labeled 2 year use test met (full exclusion).
 

If there's no taxable gain on the sale of home, ProConnect Tax won't report the sale on the Schedule D. To force reporting on the Schedule D, scroll down to the Reduced Exclusion subsection and enter a 2 in Report on Schedule D: 1=when applicable, 2=force [Override].

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. In the Quick Entry grid, enter the following fields:
    •  Description of property
    • Date acquired
    • Date sold
    • Sales price
    •  Cost or basis
    • Basis reported to IRS (blank=to IRS, 1=not to IRS, 2=not on 1099-B)
    • Expense of sale
  5. Click the blue Details button to expand.
  6. Click the three dots at the top of the screen and select Sale of Home.
  7. Check the box labeled Sale of home (MANDATORY to compute exclusion).
  8. Scroll down to the Business Use subsection.
  9. Enter the Number of nonqualified use days after December 31, 2008, if applicable.
    • Nonqualified use is generally any period after December 31, 2008 during which the home wasn't used as a principal residence for the taxpayer or spouse, including time that the home was used as a rental property or vacation home. See IRS Pub 523 for more information.
  10. Scroll down to the Reduced Exclusion subsection.
  11. Check the box labeled Sale due to change in health, employment or unforeseen circumstances.
    • This entry is mandatory for the program to calculate the reduced exclusion accurately. See IRS Pub 523 for more information.
  12. Scroll down to the Days Used as Main Home subsection and enter any applicable fields.
  13. Scroll down to the Days Property Owned subsection and enter the number of days the taxpayer owned the property.
  1. From the left of the screen, select Deductions and choose Depreciation.
  2. Click the blue Details button to expand the input screen.
  3. Click the three dots at the top of the screen and choose Disposition.
  4. Locate the General Disposition Information section.
  5. Enter the Date sold, disposed, or retired (MANDATORY).
  6. Under the Sale of Asset (4797/6252) section, enter the Sales price.
  7. Scroll down to the Sale of Home section and complete any applicable fields:
    • Sale of home (Mandatory to compute exclusion)
    • 2-year use test met (full exclusion)
    • Home acquired in a like-kind exchange.
    • First time homebuyer credit previously taken on this home.
    • Number of nonqualifed use days after December 31, 2008.
    • Depreciation allowed after May 6, 1997 [Override for homes placed in service after May 6, 1997].
  8. Under the Reduced Exclusion subsection, complete any applicable fields.
  9. To link additional assets (improvements, land) go to the General Disposition section for each asset and do the following:
    • Enter the Date sold, Disposed, or retired (MANDATORY).
    • Select the home asset in the Bulk sale (multi-asset) disposition: select the asset containing disposition amounts field.
  10. Go to the Check Return tab.
  11. Review the information on Form 4797.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. In the Quick Entry grid, enter the following fields:
    •  Description of property
    • Date acquired
    • Date sold
    • Sales price
      • Enter the full amount of the sale (not just the home), including land, improvements, any other assets associated with the business use of this home.
    •  Cost or basis
      • Enter the total basis for all of the assets.
    • Basis reported to IRS (blank=to IRS, 1=not to IRS, 2=not on 1099-B)
    • Expense of sale
  5. Click the blue Details button to expand.
  6. Click the three dots at the top of the screen and select Sale of Asset 4797, 6252.
  7. Under the Form 4797 section, enter the Depreciation allowed (-1=none, triggers 4797).
  8. Click the three dots at the top of the screen and select Sale of Home.
  9. Check the box labeled Sale of home (MANDATORY to compute exclusion), if applicable.
  10. Check the box labeled Business use in year of sale, if applicable.
  1. From the left of the screen, select Deductions and choose Depreciation.
  2. Click the blue Details button to expand the input screen.
  3. Click the three dots at the top of the screen and choose Disposition.
  4. Locate the General Disposition Information section.
  5. Enter the Date sold, disposed, or retired (MANDATORY).
  6. Enter any Expenses of sale or exchange.
  7. Under the Sale of Asset (4797/6252) section, enter the Sales price.
  8. Scroll down to the Sale of Home section and complete any applicable fields:
    • Sale of home (Mandatory to compute exclusion)
    • 2-year use test met (full exclusion)
      • Don't check this box if the reduced exclusion applies. Instead, check the box Sale due to change in health, employment or unforeseen circumstances, and complete the Days Used as Main Home and Days Property Owned subsections to calculate the reduced exclusion.
  9. Enter the Number of nonqualified use days after December 31, 2008.
    • Nonqualified use is generally any period after December 31, 2008 during which the home wasn't used as a principal residence for the taxpayer or spouse, including time that the home was used as a rental property or vacation home. See IRS Pub 523 for more information.
  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. In the Quick Entry grid, enter the following fields:
    •  Description of property
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
    • Basis reported to IRS (blank=to IRS, 1=not to IRS, 2=not on 1099-B)
    • Expense of sale
  5. Click the blue Details button to expand.
  6. Click the three dots at the top of the screen and select Sale of Asset 4797, 6252.
  7. Under the Form 4797 section, enter the Depreciation allowed (-1=none, triggers 4797).
  8. Click the three dots at the top of the screen and select Sale of Home.
  9. Check the box labeled Sale of home (MANDATORY to compute exclusion), if applicable.
  10. Check the box labeled 2 year use test met (full exclusion), if applicable.
    • Don't check the box if the reduced exclusion applies. Instead, check the box Sale due to change in health, employment or unforeseen circumstances, and complete the Days Used as Main Home and Days Property Owned subsections, to calculate the reduced exclusion.
  11. Check the box labeled Business use in year of sale, if applicable.
  12. Enter the Number of nonqualified use days after December 31, 2008.
    • Nonqualified use is generally any period after December 31, 2008 during which the home was not used as a principal residence for the taxpayer or spouse, including time that the home was used as a rental property or vacation home. See IRS Pub 523 for more information.
 

The transaction will only print on Form 4797 if there is a taxable gain on the sale. To force the sale to print on Form 4797, enter a 2 in Report on Schedule D: 1=when applicable, 2=force [Override].

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Dispositions (Sch D, etc.).
  3. Select Schedule D/4797/etc.
  4. In the Quick Entry grid, enter the following fields:
    • Description of property
    • Date acquired
    • Date sold
    • Sales price
    • Cost or basis
    • Basis reported to IRS (blank=to IRS, 1=not to IRS, 2=not on 1099-B)
    • Expense of sale
  5. Click the blue Details button to expand.
  6. Click the three dots at the top of the screen and select Sale of Home.
  7. Check the box labeled Sale of home (MANDATORY to compute exclusion).
  8. Check the box labeled 2 year use test met (full exclusion).
    • Don't check the box if the reduced exclusion applies. Instead, check the box labeled Sale due to change in health, employment or unforeseen circumstances, and complete the Days Used as Main Home and Days Property Owned subsections, to calculate the reduced exclusion.
  9. Enter the Number of nonqualified use days after December 31, 2008.
    • Nonqualified use is generally any period after December 31, 2008 during which the home was not used as a principal residence for the taxpayer or spouse, including time that the home was used as a rental property or vacation home. See IRS Pub 523 for more information.
 

The transaction will only print on Form 4797 if there is a taxable gain on the sale. To force the sale to print on Form 4797, enter a 2 in Report on Schedule D: 1=when applicable, 2=force [Override].

  1. From the left of the screen, select Deductions and choose Depreciation.
  2. Click the blue Details button to expand the input screen.
  3. Click the three dots at the top of the screen and choose Disposition.
  4. Locate the General Disposition Information section.
  5. Enter the Date sold, disposed, or retired (MANDATORY).
  6. Enter any Expenses of sale or exchange.
  7. Under the Sale of Asset (4797/6252) section, enter the Sales price.
  8. Scroll down to the Sale of Home section and complete any applicable fields:
    • Sale of home (Mandatory to compute exclusion)
    • 2-year use test met (full exclusion)
  9. Complete all other information applicable in the Sale of Home section.

If you're required to report income associated with the short sale of home or cancelation of debt:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose SS Benefits, Alimony, Misc. Income.
  3. Scroll down to the Alimony and Other Income section.
  4. Locate the Cancelation of Debt subsection.
  5. Enter the Cancelation of debt (1099-C).
  6. Enter the Qualified principal residence exclusion, if applicable.

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