IsabellaG
Employee Tax Expert

Deductions & credits

There is no place to enter your purchase. You report the sale of your home, and if you qualify you can elect to exclude the gain on the sale, up to $250,000 ($500,000 for joint returns). Purchasing a new residence doesn't have anything to do with it.

In the past, you could defer the gain on the sale of your principal residence if you replaced it with a more expensive house. That law was replaced, and now you just exclude the gain without considering your new house.

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