Investors and rental owners

If you are in Forms mode, you will need to search for PRWS. That is the Principal Residence Worksheet. 

In the third column, ensure you answer the questions in the third column (I've attached a picture for how you should be answering these). You will still need to switch over to your spouse's return and enter her cost amount and her proceeds.


If you are in Easy Mode, under Income & Expenses => Principal Residence, ensure that both yourself and your spouse is checkmarked on the first page. Then it should show you the summary page. If on the summary page, there is only one property entered for you, you can add property for your spouse. BUT when they ask you "who disposed of this property?" just say only your spouse, otherwise it will duplicate the entry. Just fill out the questions and only answer from the perspective of your spouse.

If on the summary page you do see the property under your spouse, then you may need to go in and edit the information in there.

If the property was your principal residence the entire time, then you should not see any gains reported on the Schedule 3.