All the eligibility tests etc. are met as described in IRS Publication 523 "Selling Your Home" but TurboTax says all the gain is taxable. Why?

[art555]

Property sold in 2017. Owned for 3 years. Lived in for 3 years. IRS Publication 523 seems clear. Yet, when entering in TurboTax, the gain is shown as taxable. I've double checked requirements etc. I'm beginning to wonder if TurboTax has incorporated the changes that go into effect with the 2018 tax law?

[Critter]

Actually for future reference ... the Premier would have done the sale correctly and put it on the Sch D if you had clicked the one  easy to miss  box that says to force the Sch D entry ... 

[art555]

I wonder if I am entering in the wrong area? I have been going to 'Less Common Income', then 'Sale of Home'. Under 'Sales Information' the box appears with 'Did your receive a Form 1099-S that reported this sale?' I ran through all the steps with the box checked, and I ran through all the steps with the box not checked. In both cases, all the gain was treated as taxable, and the tax due shot up dramatically. So, I must be entering in the wrong place?

[Critter]

Switch to the FORMS mode and review the home sale worksheet ... you must have answered something incorrectly.

Also in the step by step mode you may want to delete the sale and start over from scratch and read all the screens carefully .... since you have a 1099-S for the sale you must report it.

[art555]

Thank you so much. I will save the guidance you provided should I have to do this in the future. I deleted the information TurboTax created and started over as you suggested, going directly into Forms, and then adding the Home Sale Worksheet. Once filled out everything came out as expected. I wonder if TurboTax might add some guidance to help others -- maybe instead of guiding as it does now, directing, like you said, to go directly to Forms. Your suggestion is the only one that worked for me. Thank you!!!
P.S. I had tried deleting everything created in TurboTax before and started over but that process didn't work. Only going directly to Forms worked.

[Critter]

Direct entry into the FORMS mode is never suggested as any overrides will void the accuracy guarantee and can cause unpleasant results as well as keeping you from efiling the return.  In the interview I am sure you missed one little check mark or word in a sentence that messed everything up.

For future reference ... as you go along in the downloaded program you have the ability to save the return anytime you wish ... just save the info with different file names so you can always go back a section or 2 ... save it after every section so if you have a section that is giving you trouble you can simply reinstate the prior saved version.   If you have issues since the last save point then simply close the return and choose to NOT save the progress ... then when you reopen the return you will be back to the last point you saved.

[art555]

Thanks! I too prefer to stay within the 'guide me' side of using TurboTax. Unfortunately, I could not get accurate results using the guide process. I deleted, started over, several times, searching every line for something I might have missed, but no luck. For now, I see no way around it, but to go directly into Forms. Hopefully, by the time I have to do this again, there will be some tweaks to Turbo Tax so the guide can be used. I've been doing all the updates to Premier, but I can't successfully replicate the earlier suggestion for using the guide. I used to do all the forms by hand, prior to TurboTax so fortunately know my way around the forms.

[Critter]

The 2 years of 5 was not changed  so if you lived in it for 730 days in the 5 year period prior to the sale and you didn't profit more than $250K single or $500K married then you don't need to enter the sale on the return at all  UNLESS  you were issued a 1099-S at the closing. 

[art555]

Thanks! Because the last time I did receive a 1099-S I had to exit the TurboTax guide and manually complete Form 8949, then transfer that into Schedule D. Premier didn't guide through that process so am glad to not have to go through all that this time. Your answer is very much appreciated. Thanks!