My wife owned a home by herself.
I owned a home by myself.
We got married in 2022. She moved into my home.
In 2023 she sold her home.
She made $129,000 profit and in the closing documents we have a "Substitute Form 1099-S"
In TurboTax, this is not "Sale of Main Home" right? This is not "Sale of a rental home" right?
Where in TurboTax do I say my wife sold her Main home and we moved into my Main home and she made $129,000? Why even have to enter ANYTHING since it is under the $250,000 amount?????
It was her main home.
Report it that way.
Enter it since you received the 1099-S.
After two years from that sale, you can claim the exception to Capital Gain on another Main Home.
I thought of that.....BUT....
I saw on here (or some other page on TurboTax) where I entered my phone number and a TurboTax pro would call me. I did - they called about 20 minutes later.
I told her the situation....she said I do NOT have to report it. since it was less than the $250,000/$500,000 I don't even need to say anything to the IRS about it.
?
The TurboTax rep was right - technically you don't have to report this at all.
But the IRS has sent more and more letters over the last few years about these sales checking to find out what the deal is. Which results in having to file an amended return in order to report a sale that has no gain.
I have been recommending to clients to put the sale on your return just to avoid the potential question later for the last several years and I am recommending the same to you now.