topic Home sale in Deductions & credits

Home sale

Mluedders — Mon, 09 Mar 2026 08:30:18 GMT

So my husband and I bought raw land and cleared it and had a small home brought in and placed. We put in a septic and a well. Driveway house pad and electricity. We put about 70,000 into it. We sold it in 2021 for exactly the purchase price and what we had into it. How does this work with the capital gains? We lived in it the entire time we owned it.

Re: Home sale

JillS56 — Thu, 10 Mar 2022 02:16:43 GMT

If you sold the property for the purchase price and the amount that you had into the property, then there would be no capital gains. To your cost basis, you can also add the closing costs.

Is sale of primary residence Taxable?

Yes. Home sales are tax free as long as the condition of the sale meets certain criteria: The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). The two years do not have to be consecutive to qualify.

Tax Topic 701

Re: Home sale

Mike9241 — Thu, 10 Mar 2022 06:17:11 GMT

however since this was your personal residence no loss can be deducted

Re: Home sale

Mluedders — Thu, 10 Mar 2022 15:05:33 GMT

Perfect thank you. So do you recommend purchasing turbo tax premiere for this or just the simple taxes. Or possibly the delux?

Re: Home sale

MichelleLO — Sat, 12 Mar 2022 18:06:19 GMT

You can use TurboTax Deluxe if you have no gain to report on the sale of your home.

@Mluedders