How to Enter the Sale of Two Main Homes

Online · Written guide Content date September 9, 20262 min read

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A taxpayer typically owns only one primary residence or main home at a time, and if they sell that home they may be able to exclude a portion of the capital gain from tax. The exclusion is calculated on the Sale of Main Home Worksheet. Click here for more information about completing the worksheet in Tax Processors Plus Online.

Which is the main home when taxpayer has two residences?

If they own and reside in more than one residence, they will need to determine which is their main home based on the facts and circumstances. IRS Publication 523, Selling Your Home, provides guidance in determining which home is the main home should there be a question.

When can the sale of two main homes occur?

A return can include the sale of two main homes, however, when the taxpayer and spouse married during the tax year and both sold their respective primary residences in the tax year a separate worksheet must be completed for each.

To do this in Tax Processors Plus Online, from the main menu of the return select:

Income
Schedule D/Form 8949
Sale of Main Home Worksheet
Whose form is this? - Select Taxpayer.
Complete all information for the Taxpayer
When finished, click the CONTINUE button.
Return to Sale of Main Home Worksheet
Add Another Sale of Home - This will automatically default to belonging to the spouse.
Complete all information for the Spouse