Do I have to report the sale and purchase of a home?

[ColeenD3]

Yes, you have to report the sale of a personal home if it meets the following criteria below. You don't have to report the purchase, but you can enter any mortgage interest and property taxes paid. If you sold rental property, then you absolutely have to report it.

Reporting Gain or Loss on Your Home Sale

Determine whether you need to report the gain from your home.   You need to report the gain if ANY of the following is true.

• You have taxable gain on your home sale (or on the residential portion of your property if you made separate calculations for home and business) and don’t qualify to exclude.
• You received a Form 1099-S. If so, you must report the sale even if you have no taxable gain to report.
• You wish to report your gain as a taxable gain even though some or all of it is eligible for exclusion. You may wish to do this if, for example, you plan to sell another property that qualifies as a home within the next two years, and that property is likely to have a larger gain. If you choose to report, rather than exclude, your taxable gain, you can go back later and undo that choice by filing an amended return, but only within 3 calendar years after the year of sale.

  If NONE of the three bullets above is true, you don’t need to report your home sale on your tax return.

[Barb0720]

We purchased a home in 1989  for approximately  $125,000 and sold it in 2019 $243,000.  We also purchased a new home in 2019 for $239,000.  How do I  figure the capital gains, if any?

[MayaD]

You do not need to report the sale of your primary residence if:

• You never used your primary residence as a rental or took home office deduction
• You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
• You did not receive a Form 1099-S and
• You meet the home gain exclusion.

If you still need to report the sale:

1. Log in to your account.
2. Go to Federal Taxes.
3. Go to Wages and Income.
4. Scroll down to Less Common Income and click show more.
5. Select Sale of Home (gain or loss)  and Click start.

[twb21]

I purchased a home as my residence on December 30, 2022 and I will be place my current home on the market in 2023.  Do I claim the purchase on the new residence purchase on December 30, 2022 on my 2022 tax return and if so what forms do I use and what do I claim.  Thanks

[Vanessa A]

You do not report the purchase of a home on your tax return, unless you are itemizing expenses and are claiming mortgage interest and property taxes.  If you purchased the home on December 30,2022, you would not have paid any mortgage interest in 2022, therefore, you would not report anything about your home purchase on your 2022 taxes. 

When you sell your other home in 2023, you will report the sale on your 2023 taxes and include the purchase price as your cost basis to decrease your gain on the sale.