Hello,
Home1 ( Primary Residence Jun-2015 to Jun-2023 - lived for about 8 years)
Home2 ( New Primary Residence purchased in Jun-2023 and moved there )
Jun-2015 => Home1 was purchased $400000 and moved into Primary Residence.
Jun-08-2023 => Obtained HELOC (home equity line of credit) $200000 on Home1 to use amount as down-payment for Home2 (New Primary Residence)
Jun-09-2023 => Home2 purchased $850000 (New Primary Residence), using $200000 HELOC amount as down-payment for Home2
In few days, moved into Home2 (New Primary Residence)
Aug-2023 => Sold Home1 (Primary Residence till Jun-2023) in $600000
=> Re-paid HELOC amount $200000 and closed HELOC, and
=> $350000 from proceed paid towards principle of Home2
Please help me for questions I have:
1) How to enter transactions in Turbotax to avoid Capital Gains Tax on $200000 proceed on sale of Home1 Primary Residence ?
2) Is HELOC Interest Tax Deductible in this situation?
Appreciate any help.
Thanks.
