Page 12: Sale of Personal Residence
Skip this page if you did not sell a home, nobody is paying you for a property over time, and you neither paid nor received alimony.
You need this page if you closed on the sale of a home during 2026, hold a contract where the buyer pays you in installments, or pay or receive alimony under any agreement. Report a home sale even if you are confident no tax is due.
What this page does. It covers three separate things: the sale of a home, an installment sale where the buyer pays you over time, and alimony received or paid.
Before You Begin
Please gather any documents that relate to these transactions, including:
- Closing statements from the purchase and sale of your home
- Records of major home improvements
- Installment sale agreements or contracts
- Documentation showing payments received
- Divorce or separation agreements
- Records of alimony received or paid
Having these documents available will make completing this page much easier.
Sale of Personal Residence
Did You Sell a Home During the Year?
If you did not sell a personal residence during the year, simply check the box provided and continue to the Installment Sale section.
If You Sold a Home
Please provide the following information:
- Property address
- Date purchased
- Original purchase price
- Closing date of the sale
- Gross selling price
- Selling expenses paid
Selling expenses may include:
- Real estate commissions
- Attorney fees
- Transfer taxes
- Closing costs directly related to the sale
These items help us calculate your gain or loss accurately.
Home Improvements
Major improvements made during your ownership period can increase your property’s tax basis and potentially reduce any taxable gain from the sale.
For each improvement, provide:
- Description of the improvement
- Amount spent
- Date completed
Examples of qualifying improvements include:
- New roof
- Kitchen remodel
- Bathroom renovation
- Home addition
- New HVAC system
- Window replacement
- Deck construction
The organizer provides space for several improvements, but feel free to include additional information if needed.
Calculated Gain
The organizer will calculate an estimated gain based on the information entered.
Important
This figure represents the preliminary gain from the sale.
It does not reflect any available home-sale exclusions that may reduce or eliminate the taxable portion of the gain.
When we prepare your return, we’ll determine whether you qualify for the personal residence exclusion and apply it accordingly.
Installment Sales
An installment sale occurs when a buyer pays for property over time rather than paying the full amount at closing.
If you are receiving payments from an installment sale, please provide:
- Buyer’s name
- Buyer’s Tax Identification Number
- Property address
- Original year of sale
- Total contract price
- Contract price less your basis
- Principal received during the year
- Interest received during the year
Providing complete information allows us to properly calculate the taxable portion of each payment received.
Alimony
If neither you nor your spouse received or paid alimony during the year, simply check the appropriate box.
If Alimony Was Received or Paid
Please provide:
- Date of the divorce or separation agreement
- Whether the agreement was finalized before 2019 or during 2019 or later
- Amount received or paid during the year
If You Paid Alimony
Please also provide:
- Recipient’s name
- Recipient’s address
- Recipient’s Social Security Number
This information is required for proper tax reporting when applicable.
Common Mistakes to Avoid
Include Improvements Made Throughout Your Ownership Period
Many homeowners remember recent projects but forget improvements completed years ago.
Major improvements made at any time during your ownership may increase your basis and reduce your gain.
Even improvements completed many years earlier may still be important.
Repairs Are Different From Improvements
Routine maintenance generally does not increase your basis.
Examples of repairs include:
✅ Painting
✅ Fixing a leaking faucet
✅ Replacing broken hardware
Examples of improvements include:
✅ New roof
✅ Room addition
✅ Kitchen remodel
✅ New heating and cooling system
When in doubt, list the expense and provide a brief description.
Report the Sale Even if You Expect No Tax
Many homeowners qualify to exclude some or all of the gain from the sale of their principal residence.
However, the sale may still need to be reported on your return, particularly if tax reporting documents were issued.
Providing complete information allows us to properly evaluate the transaction and apply any available exclusions.
Let Us Know About Special Situations
Certain situations may affect eligibility for the home-sale exclusion, including:
- Periods when the home was rented
- Extended absences
- Temporary work assignments
- Military or ministry relocations
If any of these apply, please include a note in the comments section.
Installment Sale Principal and Interest Are Different
When you receive installment payments:
- The principal portion relates to the sale itself.
- The interest portion is generally reported as interest income.
Please provide both amounts separately whenever possible.
Alimony Rules Depend on the Agreement Date
Different tax rules apply depending on when the divorce or separation agreement was executed.
Even if the payments are not taxable or deductible under current rules, we still need the agreement dates to determine which rules apply.
Submit Sensitive Information Securely
Because this page may include Social Security Numbers and other confidential information, please submit your organizer through our secure document upload system.
For your protection, please do not send sensitive information through standard email.
When You’re Finished
Before moving on, take a moment to review the information you’ve entered.
Be sure you have:
✓ Included all home sale information
✓ Listed major improvements
✓ Provided installment sale details, if applicable
✓ Completed any alimony information
✓ Added notes for unusual circumstances
A complete Page 12 helps us accurately report real estate transactions and apply any available tax benefits. If you’re unsure whether something should be reported, simply include a note in the comments section and we’ll be happy to review it with you.