What form is required to report a sale of a primary residence?

To report the sale of a primary residence, taxpayers typically use Form 8949 and Schedule D to report the capital gain or loss resulting from the sale. Form 8949 is specifically used to list the details of the sale, including the date of acquisition, the date of sale, the proceeds from the sale, and the cost basis of the property. Schedule D then summarizes the total capital gains and losses from all transactions, including the sale of the primary residence.

When a primary residence is sold, any capital gain might be excluded under the home sale exclusion rule if the taxpayer meets certain eligibility criteria, but reporting the transaction initially via these forms is essential to establish any gain or loss as part of the tax filing process.

While Form 1040 is the main tax return form, it does not provide the details needed for reporting the specifics of the sale. Form 8829 is used for claiming expenses for business use of a home, and Form 1099-S is used to report the sale of real estate, but it is not the form that taxpayers use to report personal capital gains on their tax returns. Thus, the combination of Form 8949 and Schedule D is the correct and necessary method for reporting the sale of a primary residence for