reporting on 1040

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Entire proceeds from my sale of primary home put down on new home not in my name. How is this reported.

dev145Answer

Level 6

Even if you used the proceeds from selling your primary home to purchase a new one, you must still report the sale under the home sale section in TurboTax. When reporting, be sure to indicate that you received Form 1099-S, which ensures it is properly reported on Form 8949.

For your cost basis, use the original purchase price plus the cost of any home improvements. Use the sale price listed on your closing documents rather than the net proceeds. Depending on how long you owned and lived in the home, you may be eligible to exclude the gain from your income.

M-MTax

Level 15

Can you clarify this? It’s unclear. Did you sell your primary residence and then buy a new home but the new home is not in your name?

Dward1107Author

Level 1

Moved in with daughter. Deed in her name. Proceeds from sale used as down payment for new home.

dev145

Answer

Level 6

Dward1107Author

Level 1

Did not receive form 1099-S

M-MTax

Level 15

You have to report the sale of your home unless you qualify to exclude the gain under Section 121.

Further, you made a gift to your daughter which may need to be reported on a gift tax return (Form 709) if it exceeds the annual exclusion (currently $19,000 per individual).

Hal_Al

Level 15

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 years prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

Reference: https://www.irs.gov/taxtopics/tc701

The fact that you did not reinvest the profit in a new home does not change your eligibility for the tax free exclusion (that was an old rule that went out in 1997).

NCperson

Level 15

The sale of your home and the purchase of the other one are distinct transactions. One has nothing to do with the other.

On the sale of your home, and I will presume you lived and owned it for at least 2 of the last 5 years, there is no capital gains tax on the first $250,000 of gain. (that gets more complicated if you and your spouse bought the home years ago and the spouse is now deceased and the gain exceeds $250,000).

If the home sold for more than $250,000 or the closing agent issued a 1099-S, it must be reported on your tax return. If the home sold for less than $250,000 and the closing agent did not issue a 1099-S, there is nothing that goes on the tax return.

As far as the purchase goes, if your daughter purchased the home in her name, nothing goes on your tax return. If you provided her with more than $19,000 as part of the downpayment, there is IRS reporting that should occur (Form 709), but it does not create any tax to be paid…… and it NEVER will, unless your estate exceeds $15 million (2026 limit)

does that help?