Question

I am turning 66 this year. We sold our house in April of 2024 but do not plan to buy our next home until 2025. Can I avoid capital gains tax?

Forum|Forum|1 year ago
July 21, 2024
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TurboTax Deluxe Online

X

xmasbaby0

Employee

Buying your next home has been irrelevant since 1997.

SALE OF HOUSE

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).

If you are using online TT, you need Premium software to report the 1099-S

NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

S

stevensmith173Author

How do I obtain a form 1099-S?

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Opus 17

Employee

You may receive a 1099-S at the closing from the closing agent. The form is not always issued for the sale of a personal home, it depends on the circumstances and the tax laws in your state. You are required to report the sale, claim your personal exclusion, and pay tax on any remaining gain, even if you don't get a 1099-S.