If you have lived in your home for at least two years in the last 5 years, you have a capital gain exclusion of $500,000 (for MFJ) or $250,000 (Single or MFS).
There is no penalty for not buying a new home.
Please read this TurboTax Help article for more information.
If your wife claimed a home office deduction using the regular method, the allowable depreciation has to be recaptured and taxed at a maximum rate of 25% (whether or not the depreciation had been deducted or not)
.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
