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?
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 ...
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.
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.
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.
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.