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Level 1

Solved

Second house built, but selling main one as soon as the second is ready

Forum|Forum|2 years ago
October 25, 2023
3 replies
47 views

No text available

Best answer by Hal_Al

Expert Reviewed

It is no longer required to buy a new home to exclude the profit on the sale of your old home (that went out about 25 years ago).

All that's needed is that you owned and lived in your old house, as your primary residence, for 2 years out of the 5 years prior to the sale.

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

In TurboTax, enter at:

- Federal Taxes tab

- Wages & Income

Scroll down to:

-Less Common Income

- Sale of Home

Level 15

No text available

Level 15

@eduardtorar one has nothing to do with the other. Selling your home gets recorded on your tax return (under most but not all circumstances). The purchase does not impact the tax return.

Answer

Level 15

Expert Reviewed

It is no longer required to buy a new home to exclude the profit on the sale of your old home (that went out about 25 years ago).

All that's needed is that you owned and lived in your old house, as your primary residence, for 2 years out of the 5 years prior to the sale.

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

In TurboTax, enter at:

- Federal Taxes tab

- Wages & Income

Scroll down to:

-Less Common Income

- Sale of Home