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Do I report a home sale as ordinary income?

Must basis be calculated in every case of a sale of a primary residence; is basis optional?

Is it possible not to have to calculate basis for a primary residence sale?

My accountant thinks that all such sales must, without exception, have the basis calculated, and non-excluded capital gain must be reported. 

However, in certain situations, would it be better to report it as ordinary income, if allowed (without any basis calculation, just as a straight total sale)?

Any ideas on this? Where does it say a seller must calculate basis and report the sale as capital gain and not ordinary income?



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Jan 11th 2019 14:58

Well, I did as advised by my lawyer, I wrote it down as my usual income, since it was my grandmother’s house and the amount was insignificant. But if in your case we are talking about a sum of more than one million dollars, then I would listen to your accountant and do as he advises.

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