You'll need documents reporting the sale include the closing statement (HUD-1) or a 1099-S, contact the real estate seller for more information. However, you may not need to pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you are within these parameters, it'll be a very easy entry.
That income is free and clear as long as:
- You owned the home
- It was your main home for two years or more within the five years leading up to the sale
- You waited at least two years between selling your primary home and excluding your first $250,000. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
Follow these steps:
Open (continue) your return in TurboTax. If you’re not sure you’re in your return, select the Take me to my return button.
- In the upper right corner, search for home sale and then select the "Jump to" link in the search results.
- Answer Yes to "Did you sell or have your home foreclosed in 2017?"
- Follow the screens to enter your info.
