Question

If the profit of our home sale ($125,000) is tax free, why doew turbotax say I must upgrade to Premium because I have taxable income from the sale of a home?

Forum|Forum|4 years ago
March 2, 2022
1 reply
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We bought the house in 1992 for $90,000, added solar and made other improvements and have lived in it for the last 5 years. We are filing jointly, so any profit is tax free. Why am I told that I owe taxes on it?

TurboTax Deluxe Online

A

AmeliesUncle

I think you need to upgrade if you need to REPORT the sale (even if there are no taxes - that is just a generic message in the program).

Has it been your main home for the entire time you owned it? Just because you lived in it for the last 5 years doesn't necessarily mean it is completely tax free if there were periods when it was NOT your main home. There would also usually be taxes if you ever rented part of it or used part of it for a Home Office.