Hey everyone, I need some help here figuring out if I made a mistake in 2021 when filing...
I sold two homes recently. One in 2021 and one in 2022. When I was filing taxes for 2021, I used TurboTax and followed the wizard and somehow qualified for an exemption on the capital gains I made on the home sale in 2021. I filed as married filing jointly, and the capital gains amount was roughly $25k.
I didn't live the house for a full year, and I can't recall what would have qualified me for the exemption other than maybe it asked if I was using the funds to buy another home? which is technically what we did... we moved from one state to another. I took the proceeds from the home sale in 2021 and applied it to the new home we bought after the 6-month time span had elapsed (Chase rule doing a mortgage payment/reallocating etc.) - should this have been allowed?
I am confused because now when I am filing taxes for 2022, I know I have to showcase the sale of the 2022 home, and the small profit margin we made, but I am also having second guesses about what we did in 2021.
Any help would be greatly appreciated.
Thank you!
