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March 19, 2022
Question

Sold our house in 2020 and built a house in 2021 with proceeds

  • March 19, 2022
  • 1 reply
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We sold our house in 2020 and then built a new house in 2021 with the proceeds.  We don't have a home loan for the new house.  Where do we enter this information on 2021 taxes.  Also, can we claim the sales tax from all the building materials we purchased to build the house?  How do we enter that on 2021 taxes?

    1 reply

    DoninGA
    Employee
    March 19, 2022

    The purchase of a personal residence is not reported on a tax return.  

     

    For the sales taxes on the material to build the home go to the Sales Taxes section of the program, use Easy Guide and go through that section to report a Major Purchase for sales taxes on the materials.

     

    To enter your sales taxes

    • Click on Federal Taxes (Personal using Home and Business)
    • Click on Deductions and Credits
    • Click on I'll choose what I work on (if shown)
    • Scroll down to Estimates and Other Taxes Paid
    • On Sales Taxes, click the start or update button

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