Sold home in KY last year, but TX resident now. If under the $500K mark, do I need to even show it on my tax form? I don't want to have to purchase KY forms.

[Bennyb2]

I understand through another response that I do not have to pay any capital gains on a home sold in KY in 2016 due to it selling for under the $500K mark.

Do I have to even mention the sale on my tax forms?  If I do, it is requiring me to purchase the KY state forms, even though I know I don't have anything to claim.

As a TX resident now, I don't purchase the State forms from TT and don't want to do it for KY.

[HelenaC]

The $500K refers to the gain on the sale of your home, not the amount it sold for. See my answer below for more details.

[HelenaC · Accepted solution]

If you received form 1099-S Proceeds From Real Estate Transactions, you should report the sale of your home. 

The $500k refers to the gain on the sale of your home not the selling price of your home. See the information below.

Per Publication 523, Selling Your Home - IRS.gov, the Internal Revenue Service requires you report the sale of your main home, on your tax return if:

• You received a form 1099-S for the sale or exchange, or
• You have a gain and you do not qualify to exclude all of it, or
• You have a gain and choose not to exclude it.

Report your main home sale in the topic Less Common Income.

You won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000. 

That income is free and clear as long as: 

• You owned the home
• It was your main home for two years or more within the five years leading up to the sale
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.  

When you sell a second home, the tax situation is different. Here's that info.

TurboTax will show you if your home sale is taxable, but you’ll need to upgrade your account to TurboTax Premier. 

To enter the sale of your main home: Open (continue) your return in TurboTax. If you’re not sure you’re in your return, click the orange Take me to my return button. 

1. In the upper right corner, search for home sale and then click the "Jump to" link in the search results.
2. Answer Yes to "Did you sell or have your home foreclosed in 2016?" 
3. You’ll be asked to upgrade to TurboTax Premier. Confirm your upgrade.  
4. Follow the screens to enter your info.  

Related Information:

• I sold my home at a loss. Is this deductible?
• Can I claim real estate taxes if I recently bought or sold my home?
• Where do I enter the sale of a second home, an inherited home, or land?