What are the tax consequences of selling our primary residence and purchasing a condo with a much lower value for an over 55 years old couple filing jointly. Example: Primary residence sold for $1,200,000. Primary property adjusted cost of $200,000. The condo purchased, which becomes the new primary residence, was purchased for $350,000. What should we do to lower the tax impact? Is there a state impact? Which version of Turbo Tax do we need to use to ensure we lessen the tax impact?
