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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

To calculate the section 121 exclusion of gain on the sale of a personal residence:

1. In the Personal Sale folder, open the Home screen.
2. Enter a Description to identify the property sold.
3. Do not mark the Electing to pay tax on entire gain field.
4. If Form 1099-S was issued for the sale, mark the Report on Form 8949 if not required field.
5. Enter the date acquired, date sold, selling price, expense of sale, and basis.
6. Mark the Surviving spouse that qualifies for the full exclusionn field, if applicable.
7. If Form 1099-S was issued with a Box 6 amount, enter a code in the Buyer's part of real estate tax code field and enter the Box 6 amount in the Amount from Form 1099-S, Box 6.
8. Enter information about the use and ownership tests.
   • Either enter X in the Meets use and ownership test without exceptionsfield,
   • Or use the rest of the fields in the Exclusion information section to reduce the exclusion amount.

For more information on the Home screen fields, see Screen Home. If you need guidance with entering Form 1099-S amounts, see Form 1099-S data entry.

Result

UltraTax CS will populate the Sale of Home Worksheets, found in the HomeSale folder in Forms view.

If the gain is partially taxable

The gain, exclusion, and taxable gain on the sale calculated on the Sale of Home worksheet will report to Form 8949 with code H.

If the entire gain is excluded

Fully excluded gains are not required to be reported on the tax return unless a 1099-S was issued for the sale.

• If there was no Form 1099-S, the gain will only appear on the Sale of Home Worksheets.
• If there is a Form 1099-S, you need to mark the Report on Form 8949 if not required field. Once that field is marked:
  • UltraTax CS reports a loss by completing Form 8949 columns (a) through (e), entering an L in column (f), the loss in column (g), and a zero in column (h).
  • The selling price of home amount will be reported in the Form 8949 Proceeds column.
  • Expenses will be reported as a negative amount in the Amount of adjustment column.

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