Level 20
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Other financial discussions

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).  What you do with the proceeds of the sale is not relevant.  Any interest earned in your saving account from the deposited funds has to be reported on your tax return.

The requirement to purchase another primary home after the sale of the old home to defer capital gains taxes was removed from the tax code in 1997.

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.