It depends but if you met the requirements for claiming a partial home gain exclusion (due to a job relocation), your actual gain is less than your partial home sale gain exclusion amount and you meet all the non-reporting requirements as listed below, then you will not have to report the sale on your tax return.
Keep a record of how you determined your partial exclusion amount with your tax files.
You do not need to enter or report the sale of your primary residence if:
- You never used your primary residence as a rental or took home office deduction
- You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
- You did not receive a Form 1099-S and
- You meet the home gain exclusion (see below)
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion and partial exclusion requirements.
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps: log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "sale of home" in the search bar then select "jump to sale of home". TurboTax will guide you in entering this information.
You will need:
- The date you sold your home and the selling price (from your closing statement)
- The date you bought your home and the purchase price (from your closing statement)
- The cost of any major improvements you made, so we can deduct them for you
- Form 1099-C if you sold your home at a loss (short sale)
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S