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joutecht
New Member

I moved to NE from IN 9 years ago and sold my house in IN in 2016 (June). I'm not sure about capital gains as I received about $4000 on the sale. Will I owe capital gain

 
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KrisD
Intuit Alumni

I moved to NE from IN 9 years ago and sold my house in IN in 2016 (June). I'm not sure about capital gains as I received about $4000 on the sale. Will I owe capital gain

Yes, if this was not your primary residence and you did not own and live in it for at least 2 of the last 5 years, it does not fall under the primary home exclusion.

You should have received a 1099-S which you will enter to report the sale and the capital gain.

According to the IRS:

“In general, to qualify for the exclusion, you must meet both the ownership test and the use test. You're eligible for the Section 121 exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to  Publication 523  for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule.”


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KrisD
Intuit Alumni

I moved to NE from IN 9 years ago and sold my house in IN in 2016 (June). I'm not sure about capital gains as I received about $4000 on the sale. Will I owe capital gain

Yes, if this was not your primary residence and you did not own and live in it for at least 2 of the last 5 years, it does not fall under the primary home exclusion.

You should have received a 1099-S which you will enter to report the sale and the capital gain.

According to the IRS:

“In general, to qualify for the exclusion, you must meet both the ownership test and the use test. You're eligible for the Section 121 exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. You can meet the ownership and use tests during different 2-year periods. However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. Refer to  Publication 523  for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule.”


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