Reporting section 121 exclusion on the sale of a personal residence (1041)

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

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Use the following procedure to report the sale of a personal residence with a section 121 exclusion for an estate/trust.

  1. On Screen Income in the Income folder, click the statement button for the Capital gains or (losses) field.
  2. Enter the sale information for the personal residence in one row.
  3. Add an additional row for the Section 121 exclusion.
  4. In the Adj Code column, select H Sold or exchanged main home at a gain from the drop-down list.
  5. In the Adj to Gain / Loss column, enter the amount that you calculated for the Section 121 exclusion.
  6. Review Form 8949 and Schedule D for accuracy, and make any adjustments in the Capital gains (losses) statement, if needed.

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