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February 26, 2023
Question

I sold a main residence in 2022 and received gains of $57,934, we moved for work and reinvested it into our next main residence. Why am I being charged capital gains?

  • February 26, 2023
  • 2 replies
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How do I accurately show that it rolled into the next main residence that was purchased more than 50 miles away for the new job.

2 replies

Employee
February 26, 2023

Purchasing another home is irrelevant.    How long did you live in the house?     Do you have a 1099S for the sale?

 

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
**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.**
February 27, 2023

you may not have used the correct worksheet. you need to report through the home sale worksheet. there it will ask a series of questions about the home sale to determine the amount of exclusion you are entitled to.  if one of you owned the home for any 2 years in the 5 years before the sale and if you both occupied the home for any 2 years in the 5 years before the sale and neither has used the home sale exclusion in the past 2 years, the exclusion should be $500,000. if you don't meet these tests there should have been a question about a job move which would have given you a reduced exclusion. rollover of gain hasn't been in the tax laws for decades. the job move rule is that the new place of employment is at least 50 miles farther from the residence sold than the former place of employment was. so if old job and residence sold were 10 miles apart the new place of employment must be at least 60 miles from the former residence. this is not the same as what you provided.