topic Home Sale in Deductions & credits

Home Sale

vrobles0209 — Sun, 13 Mar 2022 20:43:46 GMT

How does Turbo Tax reflect the $500,00.00 credit for selling a home. Also, where in Turbo Tax do I deduct the loan payoff?

Re: Home Sale

ColeenD3 — Sun, 13 Mar 2022 20:52:56 GMT

It is an exclusion, not a credit, so you will not see it on Form 1040 if you qualify to exclude. You will have a worksheet you can look at once you print your return.

Your mortgage is unrelated to the sale itself. Enter any interest paid in 2021 on Schedule A.

Re: Home Sale

vrobles0209 — Sun, 13 Mar 2022 21:15:50 GMT

Hi Coleen, thanks for replying in a timely manner. So how is it reflected - let's say I purchased a house for 649,000 and sold it 1.8 M , after paying off the loan I have a profit of 1.1M. How is the profit reduced by $500K?

thanks again for your assistance!

Vic

Re: Home Sale

ErnieS0 — Sun, 13 Mar 2022 22:52:32 GMT

The difference will be shown as a $500,000 negative adjustment on Form 8949.