If you X the box for, "Do you want to report this sale as an installment sale," then we will not enter any gain from the sale of your home on Schedule D.
In order to get lines 14 to carry to Form 6252 line 15, you should go to Form 6252 and X the box at line 15 to indicate that the property was your principal residence. Copy 1 of the worksheet will carry to Copy 1 of Form 6252, and Copy 2 of the worksheet will carry to Copy 2 of Form 6252.
The acquisition and sale dates you enter will let us figure out where to enter your gain, if any, on Schedule D. See Explain This Form for Schedule D for details.
If you owned and used your home as your principal residence for two out of the five years before you sold your home, you can exclude up to $250,000 of gain from the sale ($500,000, if filing a joint return and both spouses owned and used the home).
If you don't meet the two-year test, or if you excluded gain on the sale of another home after May 6, 1997, see if you can use the mini-worksheet for line 9 to claim a partial exclusion.
Depreciation, if any, you took on your home after May 6, 1997, is not eligible to be excluded. We subtract your post-May 6, 1997 depreciation from your gain to get the amount of your gain that may be reduced or eliminated by the exclusion.
In the unlikely event that you sold more than one home at a gain after May 6, 1997 AND met the two-year ownership and use test for both, you are entitled to a $250,000 (or ($500,000) exclusion on just one sale. However, if you are married filing a joint return and you each sold a home after May 6, 1997, you and your spouse are both entitled to a $250,000 exclusion on your respective sales.