Skip to main content
January 13, 2024
Solved

Sold primary residence and bought/moved to new home out of state in 2023.

  • January 13, 2024
  • 1 reply
  • 0 views

My wife and I bought our California primary residence in 1995 for $115K, never rented it out, and sold it in 2023 for $545K.  We bought and moved to our new primary residence in Idaho in 2023 for $430K.  I received a 1099-S for $545K.  I believe my gain is below the $500K threshold, but since I received a 1099-S do I need to report my home sale on my federal/state tax returns?  If I report the sale of my home, do I also report the purchase of my new home?  Which TurboTax software do I need - Deluxe or Premiere?

    Best answer by DoninGA

    If you will be using the TurboTax desktop CD/Download editions installed on a personal computer then you can use any of the editions to report the sale.

     

    Since you did receive a Form 1099-S the sale has to be reported on a federal tax return.  If you are eligible for the capital gain exclusion then you will not pay any taxes on the sale.  You do not report the purchase of the new home.

     

    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).


    Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)


    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. 

     

    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

    1 reply

    DoninGA
    DoninGAAnswer
    Employee
    January 13, 2024

    If you will be using the TurboTax desktop CD/Download editions installed on a personal computer then you can use any of the editions to report the sale.

     

    Since you did receive a Form 1099-S the sale has to be reported on a federal tax return.  If you are eligible for the capital gain exclusion then you will not pay any taxes on the sale.  You do not report the purchase of the new home.

     

    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).


    Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)


    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. 

     

    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