DawnC
Expert Alumni

Get your taxes done using TurboTax

You don't need any special forms.  Since you did not live in the home for 2 out of the last 5 years, you won't be able to exclude the gain.   You can enter your adjusted basis that you have kept track of.   You don't need to submit any documentation with your return, the IRS will ask later if they need it.  

 

The sale of a home is a capital gain transaction, so you will need TurboTax Premium if using TurboTax Online.   If you are using the desktop software, you can use any version - they all support investment sales.  

 

Where do I enter Form 1099-S?

How does selling a home affect my taxes?

 

The calculation for a capital gain or loss is straightforward: it starts with the selling price of your capital asset minus its cost basis (what you originally paid for it).

 

If the number is positive (in other words, you made money on the sale), that's your capital gain.

 

On the other hand, if the number is negative (you lost money), you have a capital loss, unless the item is personal-use property, which can never be deducted as a capital loss.   

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