Purchasing a new house has nothing to do with paying tax on the sale of the old house. That provision was removed from the tax law 20 years ago. And you do not report the purchase of a house on your tax return.
If you don't owe tax on the sale, receiving the Form 1099-S will not make you owe tax, but you have to report the sale on your 2016 tax return. When you enter the information about the sale, and answer all the questions in TurboTax, it should not result in any tax if you are correct that you do not owe tax on the sale.
