topic We sold our primary residence in Feb 2023. We lived there for 40 years. Purchase a new home in April 2023. How will this affect our 2023 Income tax in Get your taxes done using TurboTax

We sold our primary residence in Feb 2023. We lived there for 40 years. Purchase a new home in April 2023. How will this affect our 2023 Income tax

PoleFr5564 — Wed, 25 Oct 2023 18:59:12 GMT

Re: We sold our primary residence in Feb 2023. We lived there for 40 years. Purchase a new home in April 2023. How will this affect our 2023 Income tax

Mike9241 — Wed, 25 Oct 2023 19:17:41 GMT

if you file a joint return for 2023, it seems you can exclude up to $500,000 of the gain from taxation. There can be other situations where the $500,000 exclusion is available for example unmarried surviving spouse

Re: We sold our primary residence in Feb 2023. We lived there for 40 years. Purchase a new home in April 2023. How will this affect our 2023 Income tax

emina — Wed, 25 Oct 2023 19:18:19 GMT

Hello, thanks for joining us today!

Congrats! You would report a sale of home on your tax return. Generally, you may exclude the gain from the sale of your personal residence if you meet the certain criteria. If you receive an informational income-reporting document such as Form 1099-S, Proceeds From Real Estate Transactions, you must report the sale of the home even if the gain from the sale is excludable. Additionally, you must report the sale of the home if you can't exclude all of your capital gain from income.

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Publication 523, Selling Your Home provides rules and worksheets. Topic No. 409 covers general capital gain and loss information.
Reference link: https://www.irs.gov/taxtopics/tc701