How To Figure Gain or Loss To figure the gain or loss on the sale of your main home, you must know the selling price , the amount realized , and the adjusted basis . The selling price is the total amount you receive for your home. It includes money, all notes, mortgages, or other debts assumed by the buyer as part of the sale, and the fair market value of any other property or any services you receive. The selling price of your home does not include amounts you received for personal property sold with your home. Personal property is property that is not a permanent part of the home.
Examples are furniture, draperies, and lawn equipment.
Payment by employer. You may have to sell your home because of a job transfer. If your employer pays you for a loss on the sale or for your selling expenses, do not include the payment as part of the selling price. Your employer will include it in box 1 of your Form W-2 and you will include it on line 7 of Form 1040. Option to buy.