Yes, TurboTax provides instructions both in-program and in help and tips articles regarding capital gains from a home sale, including how to calculate basis and where to report it.
In many cases, users don't need to report the home sale on their return if they qualified for full exclusion from gain and didn't receive a Form 1099-S.
You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly).
That income is free and clear as long as:
- You owned the home.
- It was your main home for two years or more within the five years leading up to the sale.
- You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
TurboTax will show you if your home sale is taxable by following the instructions provided (TurboTax Online):
- Open or continue your return in TurboTax.
- Search for home sale.
- Select the Jump to link in the search results.
- Answer Yes to Did you sell or have your home foreclosed in 2023? on the Sale of Your Main Home screen.
- Follow the instructions to enter your info.
Please see this TurboTax tips article and this TurboTax help article for more details.
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