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Re: Home sale and capital gains exclusions

DianeW777 — Mon, 13 Apr 2026 15:59:19 GMT

No, you cannot exclude $500,000 on each home. You can't get the $500k on one of your properties. The rules say both people must have lived in the property for two years.

There are certain additional requirements a married filing joint must meet to qualify for the $500,000 exclusion. Namely, you must be able to show that all of the following are true:

you are married and file a joint return for the year
either you or your spouse meets the ownership test
both you and your spouse meet the use test, and
during the 2-year period ending on the date of the sale, neither you or your spouse excluded gain from the sale of another home.

If either spouse does not satisfy all these requirements, the exclusion is figured separately for each spouse as if they were not married. This means they can each qualify for up to a $250,000 exclusion. For this purpose, each spouse is treated as owning the property during the period that either spouse owned the property. For joint owners who are not married, up to $250,000 of gain is tax free for each qualifying owner.

Example-Unforeseeable Events: As for newlyweds, assume A and B plan to buy a new home together and sell the homes each lived in prior to the marriage. Neither party satisfies the ownership and use requirements with respect to the other’s premarital home. A and B have gains of $200,000 and $300,000, respectively, incident to the sales. Whether they file jointly or individually, A’s $200,000 will be fully excluded by the $250,000 exclusion, whereas $50,000 of B’s gain—the excess over the $250,000—will be subject to tax. B may not use A’s unused exclusion on B’s gain in excess of the $250,000 limit.

The 'Main Home' Rule: The IRS generally allows the exclusion for only one "main home" at a time. If you and your spouse live in separate homes, or have two homes, you must determine which is primary based on where you spend the most time, vote, and receive mail.

Re: Step Up basis rule

DianeW777 — Mon, 13 Apr 2026 15:36:34 GMT

The answers to your questions are shown below.

Yes, an LLC can utilize a stepped-up basis on a rental house after a partner dies, but it is not always automatic. It typically requires the LLC to be taxed as a partnership and for the LLC to make a Section 754 Election, which adjusts the inside basis of the property to match the new, higher fair market value (only half of the property would receive the stepped up basis if you were also the other ownerof the property at death).
This is may be relevant since it was sold in 2022 and the statute will run out April 15th, 2026. Be sure if you change it, you have a confirmed mail date before April 15th.
This change would not in and of itself create an audit. Be sure you have the relevant documents to keep with your tax return.Follow the instructions in the link below to obtain the necessary TurboTax Desktop products (2024 and 2023).

The amendment can be completed using the steps below and if necessary you can use the IRS transcript for your original 2022, 2023 or 2024 tax return, if you do not have a copy or did not use TurboTax.

How do I amend a tax return for a prior year?

Home sale and capital gains exclusions

vmwatson — Mon, 13 Apr 2026 02:53:07 GMT

My spouse and I were both widowed from our first spouses in 2018. We each owned a home (both purchased in 2005 or before). We were then married in 2000, but each continued to reside in and occupy our respective homes since purchase. (Our primary residence for each of us). We file our taxes jointly and have done so since marriage. We are now considering selling both homes and buying one together. How will selling both homes affect us regarding capital gains exclusions? (IE: Married Couples Filing Jointly: Can exclude up to $500,000 of capital gains from the sale of a primary residence). Can we exclude that amount on each home? Or can we each only exclude $250,000 capital gains on each home? If that is the case, how to we indicate such since we file jointly (as I believe it would automatically want to apply the $500,000 exclusion). Do we need to wait 2 years in between selling each home? Your thoughts are greatly appreciated.

Step Up basis rule

vmwatson — Mon, 13 Apr 2026 02:48:49 GMT

My late husband and I had an LLC that owned 1 piece of rental property (the LLC was the listed owner, but we were the only people involved with the LLC). He and I were the only owners and managers of this LLC. My late husband died in 2018. I sold the rental property in 2022. I reported it on taxes using the original purchase price in 2013. Since it was owned by the LLC, was I able to use the “Step-up basis rule” to use as the adjusted cost basis? 2) If so, I was unaware that I should have gotten the property appraised at his death in 2018, so can I use the 2018 property tax value as the cost basis, (my state is a community property state and assesses the property taxes at the Fair Market Value)? 3) I am considering filing an amendment to my tax return & understand that I have 3 years from when it was reported on my taxes (April 15, 2023), so I need to decide by April 15, 2026. Will an amendment such as this most likely cause an audit? Thank you so much for your assistance.

Re: Determination of the stepped-up basis due to numerous inheritances of a family-owned property

DawnC — Sun, 12 Apr 2026 17:08:24 GMT

You must calculate a separate cost basis for each specific slice of the property you acquired. In the eyes of the IRS, you didn't just sell one property; you sold a collection of interests, each with its own "birthday" and value. To find your total basis, you need to recreate a timeline of ownership. For every inheritance event, follow this formula:

Interest Basis = Percentage inherited * FMV at DoD (date of death) - Determining stepped-up basis

The basis can be increased for improvements and selling expenses.

Determination of the stepped-up basis due to numerous inheritances of a family-owned property

washingee — Sun, 12 Apr 2026 00:08:45 GMT

I have separately inherited percentages of a family-owned property at different times, via the deaths of my mother, aunt, and two uncles from 6/2004 - 7/2021. This property was sold earlier this year. How do I determine the stepped-up basis in order to pay capital gains taxes for this property?

Re: Minnesota State Tax Program Form M1 latest version (March 18, 2026) introduces barcode issue.

MagicLou — Fri, 03 Apr 2026 05:32:06 GMT

Yes, this issue has been resolved, and I no longer see the double-printed illegible barcode at the top of each page of the Minnesota Form M1 as well as the control number at the bottom. I have reprinted the returns where I first saw this issue and they printed perfectly in the new 04/02/2026 release of the Minnesota State Program. Thank you so much for your quick attention to this issue!

Re: Minnesota State Tax Program Form M1 latest version (March 18, 2026) introduces barcode issue.

GabiU — Fri, 03 Apr 2026 00:21:26 GMT

Hi @MagicLou This has been resolved in the most recent update. Can you confirm that you no longer see the barcode doubled? Thanks again!

Re: Minnesota State Tax Program Form M1 latest version (March 18, 2026) introduces barcode issue.

GabiU — Wed, 25 Mar 2026 01:12:45 GMT

Thanks @MagicLou I've passed this on for further investigation.

Minnesota State Tax Program Form M1 latest version (March 18, 2026) introduces barcode issue.

MagicLou — Mon, 23 Mar 2026 18:57:37 GMT

The latest version of the Minnesota State Tax program (March 18, 2026) has introduced a new issue with the barcode printing at the top right of the form. The barcode for the number 251111 is extremely fuzzy and appears to be double-printed on both pages of the form. In addition, the control number at the bottom of the form's two pages should be 1555, but it appears to be overlaid with the number 9995. This is not the case with the previous update which prints both perfectly. I have not heard from the Minnesota Department of Revenue if there have been any rejections of TurboTax-prepared state returns due to the illegibility of the barcode and control number. I am using TurboTax Premier 2025 Desktop.

Re: Trust 199A Dividends from Form 1099 Qualifying for QBI Deduction

AmyC — Thu, 19 Mar 2026 17:31:07 GMT

Thank you for letting us know! I have been told that you should select 2024 to get the process started and then your paperwork will show it is actually 2025 and you can add that in your comments as well. Best wishes!

@louiecm24

Re: Trust 199A Dividends from Form 1099 Qualifying for QBI Deduction

louiecm24 — Thu, 19 Mar 2026 15:53:42 GMT

First of all, thank you AmyC for the information about submitting a claim under Turbo Tax 100% Accuracy. I went to the link and found there was not a tax year label for 2025. Do you have any idea when Turbo Tax will update their Tax Year selector. thanks again louiecm24

Re: Trust 199A Dividends from Form 1099 Qualifying for QBI Deduction

AmyC — Thu, 19 Mar 2026 15:25:15 GMT

You can submit a claim to accuracy guarantee. Scroll to the bottom to begin the process.

See How do I submit a claim under the TurboTax 100% Accurate Calculation Guarantee or 100% Accurate, Expert Approved Guarantee?

@louiecm24

Business filer promised 20% discount on personal

nc1381-doug — Thu, 19 Mar 2026 01:37:37 GMT

I filed my s-corp return, and was offered a 20% discount to file the personal return. I clicked that button, and filed the personal taxes. However, the pricing at the end was not obviously reduced ... it claimed I saved $15, but should have been more like $50 or 70. And, the amount was $199 for federal, which is more or less full retail version. I paid it so I could file, but was wondering how I might be able to raise the question to anyone in support at Intuit. When I call the number, it routes me to options for various products. My tax expert that I was able to reach told me that it would be applied at checkout, but, it wasn't. It isn't a big thing, but I'd like to trust these big "click here" buttons on the site! Suggestions for whom or how to contact?

Re: Trust 199A Dividends from Form 1099 Qualifying for QBI Deduction

louiecm24 — Sun, 15 Mar 2026 00:18:27 GMT

I had a similar situation while preparing taxes for a Trust. The Trust's brokerage statement reported QBI and exemptions which appear on lines 20 and 21 on the Calif 1041 2025, TTB did not generate From 8995. Shortly there after CA FTB notified the Trust that since Form 8995 had not been filed with the return, taxes are now owed because Form 8995 was not attached to the return. I did not know to look for the required form nor did TTB instruct me to generate the form. Is this glitch? Thank you.

Re: Deleting 1095-A form

BillM223 — Fri, 13 Mar 2026 15:03:36 GMT

When your return was "rejected", did this happen before your return was accepted by the IRS? Or was your return accepted by the IRS, but afterwards, you received a letter stating that you need to add form 8962 to your return?

In the first case, what was the reject code?

Re: Customer Service

jdmercha — Wed, 11 Mar 2026 18:32:20 GMT

Both numbers are still failing.

Deleting 1095-A form

user17731896207 — Wed, 11 Mar 2026 00:48:59 GMT

I'm having an issue with filing my return. I was claimed as a dependent for health insurance, thus I do not have a 1095-A form myself. However, whenever I try to file my return, TurboTax tells me to delete 1095-A, but I never had this form in the first place. This is preventing me from e-filing. I've already had expert help on TurboTacx, but they were equally as confused on why this issue kept popping up. We went to delete a form and it wasn't there, I've put my SSN in the box, and deleted 1095-A, but the issue kept popping up. I've been told to clear cache/cookies, switch browsers, etc. I've tried to restart but since I already sent a submission and got rejected for the return, I cannot restart. Just very confused on this whole issue, I'm considering just filing by mail, since 1095-A doesn't even seem to exist.

Re: Future sale of rental property with TurboTax

DianeW777 — Mon, 09 Mar 2026 19:09:32 GMT

Yes, you are following the right path to arrive at your estimated income for 2026. All gain for house and land will end up on Schedule D.

If there is a sale of any other assets such as a lawn mover, appliance, etc these would not go to the Schedule D or receive any special capital gain treatment for a gain at or below the depreciation claimed on the asset.

Re: Future sale of rental property with TurboTax

10276 — Sun, 08 Mar 2026 21:24:27 GMT

Thanks for your reply about using qualified allowable loss carry over to reduce the capital gains in selling the rental property.

I have performed a hand calculation to estimate the taxes that will imposed on the "total gain" Line 24 and "depreciation allowed" Line 22 from Form 4797 Part III for the future sale.

I found out that the only place that I used the "Capital Loss carry over" from 2025 income tax to reduce the 2026 capital gain is in "Schedule D Capital Gains and Losses" line 14 to obtain the net long term capital gain; then reported this gain to Form 1040 Line 7a Capital Gain (attached Sch. D) to compute the Adjusted Gross Income.

Form 1040 Line 16 Tax ... will come from "Schedule D Tax Worksheet" Line 47 is Tax on all taxable income including capital gain.

Question: Is my finding "correct" so far in estimating the 2026 income tax calculation with future sale of rental property?

Thanks in advance for your reply.