Congratulations on the sale of your home! On your 2022 tax return, in the Federal section in Wages and Income you should have reported the sale of your home. Your not reporting it does not automatically mean that you will get an audit. Sometimes on the sale of a home, you are given the Form 1099-S. If one was issued then you will receive a notice from the IRS asking for more taxes to be paid. Please do not panic at that time. Contact us so that we can give you the next steps to resolve this notice issue. If you have not received the notice already, I would recommend amending your tax return to report he sale of your primary residence. The exclusion is available as long as you have not sold another home and claimed the exclusion credit in the 2 years pre or post this sale. You would report the sale in the Wages and income section, under Investment sales even though this is the sale of your primary residence. When you start the entry in there, it will ask you details such as sales proceeds, sales expense and cost basis of the home along with date of purchase and sale. At the end, if it is not taxable it will give you the option to report or not report it. I recommend reporting it. This sale will show on Sch D under long term sale. Please contact us and we assist in making this entry.
