We sold and bought homes in 2016. The new one cost less than what we sold our old one for, but we used the difference for upgrades on the new home. How do I handle this?

I was prompted to enter information about the sale of the old home, like the basis, and it reduced my refund quite a bit.  I was not asked to enter information about the new home we purchased.  Is TurboTax treating this like  capital gains? It's well below the limit of $500,000 for us filing jointly.