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posted Mar 12, 2021 10:32:30 AM

Is there a time limitation on how long I could rent a home after a non-table sale of my personal residence without a tax consequence?

is there a time limitation on how long I could rent a home after a non-taxble sale of my personal residence without a tax consequence?

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1 Best answer
Level 15
Mar 12, 2021 11:07:16 AM

Not sure what you are asking.    You do not have to purchase another house to avoid capital gains if you sold your house----that tax law changed in 1997.    What you do with the proceeds of selling your house is irrelevant.

 

SALE OF HOUSE

 

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

  • If you are using online TT, you need Premier or Self-Employed software to report the 1099-S

2 Replies
Level 15
Mar 12, 2021 11:07:16 AM

Not sure what you are asking.    You do not have to purchase another house to avoid capital gains if you sold your house----that tax law changed in 1997.    What you do with the proceeds of selling your house is irrelevant.

 

SALE OF HOUSE

 

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

  • If you are using online TT, you need Premier or Self-Employed software to report the 1099-S

Level 15
Mar 12, 2021 11:48:31 AM

I'm not able to understand your question, and/or why you are asking it.

If you lived in a property for at least 2 of the last 5 years you owned it, counting backwards from the closing date of the sale, then you qualify to exclude any gains realized on the sale for being taxed, up to a certain amount. It's $250K if single or married filing separate, and $500K if married filing joint.

Where you live after you sell your primary residence doesn't matter.