Question

Home Sale Gain

Forum|Forum|6 years ago
March 8, 2020
1 reply
0 views

I've entered all the information for my home sale and TT is telling me I owe taxes on $4551 of gains. Sold home for 300,000 and had 18k of selling expenses. Adjusted cost basis was 175k. I meet all the exclusion requirements and am well under the 500k exclusion amount for married filing jointly. Any idea why it's saying I owe?

TurboTax Home & Biz Windows

A

AlanT222

If you sold your personal primary 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 and owned the home for two years).

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B

blanz23Author

Thank you for your reply. However, I already knew all of that. The question is why is TT not handling it correctly. In the end, I guess I can just delete that information from TT, but it's concerning that TT is unable to handle a fairly basic issue correctly.

DoninGA

Employee

@blanz23 wrote:

Thank you for your reply. However, I already knew all of that. The question is why is TT not handling it correctly. In the end, I guess I can just delete that information from TT, but it's concerning that TT is unable to handle a fairly basic issue correctly.

Have you gone over all of your answers, including the dates entered, in the Sale of Home section?

Did you answer Yes to the question of living in the home for two or more years? Did you answer No to the question of using the home than anything other then your Primary Home? Did you answer No where asked if you sold another main home after January 1, 2017? Did you answer No where asked about depreciation due to having a home office or renting all or part of your home?

The Home Sale section of the TurboTax software has been basically the same for almost twenty years with no reports of any systemic failures.