rjs
Level 15
Level 15

Deductions & credits

The law that allowed you to defer capital gain on your home if you purchased a new home within two years was eliminated in 1997. There is no place to enter the purchase of a new home because the purchase has no effect on your taxes.


The old law was replaced by the Section 121 exclusion of gain on the sale of your home. See the following link on the IRS web site for some basic information about the exclusion of gain.


Topic No. 701 Sale of Your Home


See IRS Publication 523, Selling Your Home, for all the details of the exclusion. When you entered the sale of your home in TurboTax, TurboTax would have asked some questions to determine whether you qualified for the exclusion of gain. It has nothing to do with purchasing a new home.


You cannot do a Section 1031 like-kind exchange on your personal home. A like-kind exchange is only for property used for business or investment.