@Caroleg22 wrote:
I have not spoken with a professional yet. However, I did find a worksheet in the TurboTax Premier edition on the sale of your home that factors in a fire loss and insurance claim when selling your home. Based on that information, my home basis was zero, so the sale of $150,000 would be non-taxable. I will probably still consult an accountant to make sure I am understanding everything correctly.
I would like to see the worksheet you used because I think you misunderstood it. If you have zero basis in a piece of property, and you sell it for $150,000, you have a capital gain of $150,000.
You might be able to exclude the gain from your income (make it not taxable) if it was the sale of your personal home and you meet certain time limits, but the gain is still there.
