It is no longer required to buy a new home to exclude the profit on the sale of your old home (that went out about 25 years ago).
All that's needed is that you owned and lived in your old house, as your primary residence, for 2 years out of the 5 years prior to the sale.
The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.
In TurboTax, enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
- Sale of Home
