topic I just sold my home of 22 years (purchased in 1994) and purchased a new one. Turbo Tax indicates that my previous home which sold in 1994 has taxable capital gains. in Deductions & credits

I just sold my home of 22 years (purchased in 1994) and purchased a new one. Turbo Tax indicates that my previous home which sold in 1994 has taxable capital gains.

smokey2706 — Thu, 06 Jun 2019 14:09:53 GMT

What about my previous home sold in 1983 with gains? Is that also taxable and if so where does it end?

How much is your gain? Starting in May 1997…..For a prim...

VolvoGirl — Thu, 06 Jun 2019 14:09:55 GMT

How much is your gain? Starting in May 1997…..For a primary home, if you owned and lived in your house for 2 out of the last 5 years on the date of sale when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax. You can not take a loss on your tax return. The rule about rolling over the gain to the next house went out in May 1997.

To exclude gain under the rules in this publication, you in most cases must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale.

If you made more than a 250,000 (500,000 for joint) gain then the amount over it is taxed. Doesn't matter what you did with the proceeds like buy another house or pay off the mortgage. The rule about rolling over the gain to the next house went out in May 1997. But if you rolled over a gain before then it will decrease your cost basis when you sell after May 1997. See publication 523 Worksheet on page 13 item 5 m. - Gain postponed from a home sold before May 7, 1997
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p523.pdf">http://www.irs.gov/pub/irs-pdf/p523.pdf</a>

For the home sale purchased in 1994: You may qualify to...

PaulaM — Thu, 06 Jun 2019 14:09:56 GMT

For the home sale purchased in 1994:

You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.

If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.

Do not report the sale of your main home on your tax return unless:

You have a gain and do not qualify to exclude all of it,
You have a gain and choose not to exclude it, or
You have a loss and received a Form 1099-S.

Sale of main home

IRS pub 523

Gain on primary home sales since have changed significantly since 1983. Assuming you handled the gain on 1983 according to the rules at the time, there should be nothing to report now.