Question

sold and buy a house

Forum|Forum|5 years ago
February 12, 2021
1 reply
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I sold my personal house and bought another. I spent money in my new house. I did some improvements can I put the money in my taxes to reduce my gain from the old house sale? Note: I never rent the old house.

Thanks

TurboTax Home & Biz Windows

DoninGA

Employee

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Purchasing another home at the same or higher price then the home that was sold to defer capital gains was removed from the tax code in 1997.

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premier or Self-Employed edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

J

jaclyndidierAuthor

I lived there for less then 2 years. But I never received a 1099-S

DoninGA

Employee

@jaclyndidier wrote:

I lived there for less then 2 years. But I never received a 1099-S

You need to report the sale since you lived there for less than 2 years.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

Or enter sale of home in the Search box located in the upper right of the program screen. Click on Jump to sale of home

Note - The Adjusted Basis of the home is the purchase price plus the cost of any improvements made prior to the sale.