Profits realized from selling primary residence

Forum|Forum|1 year ago
June 26, 2024
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I am a retired 71-year-old man. I am considering selling my primary residence to both simplify and lower my mortgage payments. I expect to realize a profit of approximately $180k. Can these profits still be considered tax-free or has that benefit ended? I must also mention that I sold my home in 2005 and realized an $80k profit that I did not pay taxes on.

Ask the Experts - Retirement II - June 2024

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 Premium software to report the 1099-S

NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter

**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.**