If my husband and I sell our house in 2024 that is my primary residence for 20 years with a capital gain on 600k and we are buying a new house in May 2025 for 650k . How do we handle the capital gains etc in 2024 and 2025?
Buying a new house is irrelevant. The tax law that allowed you to avoid capital gains if you purchased another home changed in 1997.
If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)
If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).
NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter
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