Selling a home: tax records that may matter
Updated: 2026
A home sale is not reviewed from the sale price alone. The return may depend on whether the property was your main home, how long you owned and used it, adjusted basis, and whether you received Form 1099-S.
The main-home exclusion
If you have a gain on the sale of your main home, you may qualify to exclude up to $250,000 of gain, or up to $500,000 for many married couples filing jointly. The exclusion is not automatic for every home sale.
In general, the ownership and use tests look for at least 24 months, or 2 years, within the 5-year period ending on the sale date. Other limits and exceptions can matter, including a prior home-sale exclusion.
Records for adjusted basis
Keep the purchase closing statement, records of qualifying capital improvements, and the sale closing statement. These documents help determine adjusted basis and gain instead of relying only on the original purchase price.
If the home was ever used for rental or business purposes, bring the depreciation history and dates of that use because those facts can affect the calculation and reporting.
Form 1099-S and reporting
If you receive Form 1099-S for the sale, the sale generally must be reported even when the gain may be fully excludable. A sale must also be reported when all of the gain cannot be excluded.
When reporting is required, Form 8949 and Schedule D may be part of the return. Keep Form 1099-S with the closing documents so the reported proceeds can be reconciled.
Facts to flag before preparation
Mention if you sold another main home within the prior two years, used the property as a rental or home office, inherited or received the property as a gift, changed ownership during the holding period, or had special circumstances that may affect the standard tests.
What to prepare
A list of documents and supporting records for credits, dependents, mileage, expenses, and foreign items.