capital gains on house sale/rebuy

hddragon — Wed, 22 Oct 2025 16:30:47 GMT

We sold our house in Washington State and then bought a house in Arizona for more. Do we have to recognize capital gains if the money was reinvested in a new house?

Re: capital gains on house sale/rebuy

xmasbaby0 — Wed, 22 Oct 2025 17:07:36 GMT

The law that helped you avoid capital gains by purchasing another home expired after 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).

If you are using online TT, you need Premium software to report the 1099-S

topic capital gains on house sale/rebuy in Deductions & credits

capital gains on house sale/rebuy

Re: capital gains on house sale/rebuy