bb271
Returning Member

Selling primary residence that was initially a vacation home

Hi,

 

We had a vacation home from 1996 thru 2016.  At the beginning of 2017, we made it our primary residence, living there full time til we sold it late in 2020.  I thought that since we lived in the home over 2 years of the last 5 years, that our gain (gain is less than $500k) wouldn't be taxable but turbo tax is saying a portion IS taxable.  It asked us how many days the home was used for a "non qualified purpose" since 2008.  So its basically saying that a portion of the gain relates to 2009 - 2016 which would make that portion taxable.

 

I thought since we lived in the home well over 2 years of the last 5, our gain wouldn't be taxable.  Am I entering something incorrectly into turbo tax or is turbo tax set up incorrectly for 2020?

 

Thanks.