I turned 66 last November, I want to sell my home and use the equity to buy a Motorhome as my residence. Will I get hit with Capital Gains Taxes?
What you do with the proceeds of selling your house has been irrelevant since 1997.
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).
There is no way to show and handle the step-up value when selling your primary residence. I know
I am entitled to the step-up as of the date of my wife's death in 2012. Turbo Tax has no way to handle
that. I'm using 2012 Premier. Any suggestions?