Home sale

[Mluedders]

So my husband and I bought raw land and cleared it and had a small home brought in and placed. We put in a septic and a well. Driveway house pad and electricity.  We put about 70,000 into it. We sold it in 2021 for exactly the purchase price and what we had into it.  How does this work with the capital gains? We lived in it the entire time we owned it.

[JillS56]

If you sold the property for the purchase price and the amount that you had into the property, then there would be no capital gains.    To your cost basis, you can also add the closing costs.   

Is sale of primary residence Taxable?

Yes. Home sales are tax free as long as the condition of the sale meets certain criteria: The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). The two years do not have to be consecutive to qualify.

Tax Topic 701

[Mike9241]

however since this was your personal residence no loss can be deducted 

[Mluedders]

Perfect thank you. So do you recommend purchasing turbo tax premiere for this or just the simple taxes. Or possibly the delux?

[MichelleLO]

You can use TurboTax Deluxe if you have no gain to report on the sale of your home.

@Mluedders