There will be a section on the sale of the home that will ask you what the Adjusted Basis is for the home that was sold. There is an Easy Guide function for Adjusted Basis in the Premier desktop edition to help you calculate Adjusted Basis, not sure if it is in the Deluxe desktop edition. It is also available in the Premium online edition but not sure if it is in the Deluxe online edition.
I do know that if you have to report the sale on your tax return, either because you have capital gains owed or you received a Form 1099-S for the sale you will have to use the Premium online edition.
If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).
Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)
If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premium edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.
