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DO I NEED TO REPORT SALE OF HOME IF DOING STANDARD DEDUCTION
I ALSO PURCHASED A HOME. IF I CHOOSE STANDARD DEDUCTION DO I NEED TO REPORT THE SALE AND PURCHASE?
There are two separate things to consider with the home sale and home purchase. There may be expenses that can be deducted as itemized deductions. If you are taking the standard deduction, these expenses don't need to be entered.
The other issue the must be addressed is the gain or loss on the sale of the home. I assume this home was your primary residence. If not, there are other considerations that I am not covering here.
You may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases).To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:
1. Owned the home for at least 2 years (the ownership test), and
2. Lived in the home as your main home for at least 2 years (the use test).
If you qualify for the capital gain exclusion, you do not have to report the gain on the sale of your personal residence on your federal tax return unless the gain on the sale was greater then the exclusion, you rented out the home at some time while you owned it, or you received a Form 1099-S for the sale of the home.
See IRS Publication 523 Selling Your Home for more information - http://www.irs.gov/pub/irs-pdf/p523.pdf
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