In 2019, for health reasons (my wife is a cancer survivor and still under the treatment), we had to move to a warmer climate.
Can the cost of selling our home, moving and buying a new one be listed in the "original cost", as a deduction in house sale section?
If not, where should we put these expenses since TurboTax guides will 'force' us to standard deduction for only $27,000.
How can I enter this ‘special’ situation into my TT program?
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Moving for medical reasons is not an allowable medical expense deduction.
You report the sale of the home in the normal way and pay capital gains tax if your gain is more than the $500,000 exclusion. The only way that moving for medical reasons helps on your taxes is the following: if you lived in your former home less than 2 years and moved due to unexpected medical needs, you can qualify for a partial capital gains exclusion even though you don't meet the 2 year rule for the normal exclusion.
If you make improvements to your new home for medical reasons, you can deduct the cost of those improvements as medical expenses only if they don't raise the value of your home. (For example, hand rails and accessibility devices installed in bathrooms are generally not viewed as raising the value of the home, so the cost can be deducted as a medical expense.)
Thank you for your reply.
How can I enter in my TT return the fact that our home sale and move were done for health reasons?
I see this on line 20 of the 'Home Sale Worksheet' (in the 'forms' section)
I don't know how to enter it when I use the TT 'step by step' program?
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