Where should the recognized gain from the sale of a principal residence be reported?
The recognized gain from the sale of a principal residence should be reported on Form 1040 Schedule D.
1. The entire recognized gain will be reported on Schedule D, (that would be the result of the difference between the selling price less cost basis on the sales of the residence).
2. Any exclusion is reported directly beneath the gain as a loss described as
“IRC Sec. 121 Exclusion.”