Gain on sale of the house not taxed

Forum|Forum|3 months ago
March 7, 2026
2 replies
13 views

Reporting the sale of the primary home, there is a $10,881 gain in excess of Exclusion Limit (500K). Both Schedule D and form 8949 are generated but the $10,881 did not change the tax liability. Why is that?

ProConnect Tax

Intuit_Kallana

Level 7

Hi @Babak, just for clarification are you stating the forms don't show the capital gain or are you questioning why it didn't increase their tax liability? If it is the latter, that would depend on what else is on the return in terms of their income, deductions and credits to determine if that $10K capital gain affected their actual liability. If the form is not showing the capital gain, we can help check your inputs to see what is missing. Either way, our support teams are available today to help you: How to Contact ProConnect Support .

abctax55

Level 15

Capital gains up to a certain amount (depending on other income, etc on the return) are taxed at zero.

Check the computations on page 2 of Sch D.

Lacerte (PTO's big sister) provides a nice informational diagnostic pointing out the amounts taxed at zero. Don't know if PTO does, probably not.

HumanKind... Be Both

Intuit_Kallana

Level 7

ProConnect does as well generate a worksheet anytime you use the Sale of Home on the Federal worksheets.

abctax55

Level 15

@Intuit_Kallana

I was referring to Lacerte's informational diagnostic that specifically says "$$$$ of capital gains were taxed at zero". It's very convenient vs looking at the worksheets produced. Altho I do suggest the OP look at those to improve his/her understanding of how taxation on capital gains works.

HumanKind... Be Both

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