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taxmap/pub17/p17-085.htm#en_us_publink1000172467

Reporting the Sale(p112)


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previous topic occurrence Reporting the Sale next topic occurrence

Do not report the 2009 sale of your main home on your tax return unless:
If you have any taxable gain on the sale of your main home that cannot be excluded, report the entire gain on Schedule D (Form 1040). Report it in column (f) of line 1 or line 8 of Schedule D, as short-term or long-term capital gain depending on how long you owned the home. If you qualify for an exclusion, show it on the line directly below the line on which you report the gain. Enter "Section 121 exclusion" in column (a) of that line and show the amount of the exclusion in column (f) as a loss (in parentheses).
If you have a loss on the sale of your main home for which you received a Form 1099-S, you must report the loss on Schedule D even though the loss is not deductible. Report the transaction on line 1 or 8, as above. Complete columns (a) through (e). Enter -0- in column (f).
If you used the home for business or to produce rental income, you may have to use Form 4797 to report the sale of the business or rental part (or the sale of the entire property if used entirely for business or rental). See Business Use or Rental of Home in Publication 523 and the Instructions for Form 4797.
taxmap/pub17/p17-085.htm#en_us_publink1000172468

Installment sale.(p112)


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previous topic occurrence Installment Sale next topic occurrence

Some sales are made under arrangements that provide for part or all of the selling price to be paid in a later year. These sales are called "installment sales." If you finance the buyer's purchase of your home yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale. You may be able to report the part of the gain you cannot exclude on the installment basis.
Use Form 6252, Installment Sale Income, to report the sale. Enter your exclusion on line 15 of Form 6252.
taxmap/pub17/p17-085.htm#en_us_publink1000172469

Seller-financed mortgage.(p112)
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If you sell your home and hold a note, mortgage, or other financial agreement, the payments you receive generally consist of both interest and principal. You must separately report as interest income the interest you receive as part of each payment. If the buyer of your home uses the property as a main or second home, you must also report the name, address, and social security number (SSN) of the buyer on line 1 of Schedule B (Form 1040A or 1040). The buyer must give you his or her SSN and you must give the buyer your SSN. Failure to meet these requirements may result in a $50 penalty for each failure. If you or the buyer does not have and is not eligible to get an SSN, see Social Security Number in chapter 1.
taxmap/pub17/p17-085.htm#en_us_publink1000172471

More information.(p112)
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For more information on installment sales, see Publication 537, Installment Sales.