Question

We have lived in a home for 5 yrs

Forum|Forum|5 years ago
September 26, 2020
2 replies
0 views

Only wife and I live in home. Etsy shop net is less than $2,000.00 per year. Home was just sold -- $55k net profit minus $22k used as a down payment on new home.

TurboTax Deluxe Online

X

xmasbaby0

Employee

What you did with the proceeds of the sale of your home is irrelevant. The last time it mattered whether you re-invested into another house to avoid capital gains was 1997.

What is your question? You did not ask one.

**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.**

X

xmasbaby0

Employee

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 Premier or Self-Employed software to report the 1099-S
.https://ttlc.intuit.com/questions/1901135-i-sold-my-home-at-a-loss-is-this-deductible

Not sure why you mentioned Etsy. Are you asking how to enter the self-employment income from selling items on Etsy?

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

**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.**

Carl11_2

Employee

Etsy shop net is less than $2,000.00 per year.

I am assuming you were self-employed and claimed a home office in the home. If so, and you took depreciation on the home office, that depreciation has to be recaptured when you report the sale. Therefore you'll need to report your sale under the "less common income" section is the "Sale of Home (Gain or Loss)" section under that.

When asked if you used the home during your period of ownership for anything other than your primary residence, answer *NO* (assuming you did not). Then a few screens later you'll be asked if you took any depreciation on the property, such as by claiming a home office or renting out a part of your home. Select YES and then you'll be prompted to enter the total of all depreciation taken during your ownership.

Take note that if you qualify for the "lived in 2 of last 5 years" capital gains tax exclusion, your recaptured depreciation is *NOT* included in that. So you *WILL* pay tax on any recaptured depreciation. No exceptions.