How do I access a worksheet regarding determining the amount to report as a capital gain, if any, in the sale of our home in 2025?

[bobandterry2002]

We sold our home and used some of the sales price to pay off the mortgage. How does this calculate in determining the amount of capital gain, if any, to report as the "adjusted basis".

[Opus 17]

Your basis is what you paid for the home, plus the cost of any improvements, and minus an adjustment for business use of the home (if you used the home for a business, took home office deduction, etc.)

The amount of your mortgage or the payoff amount has nothing to do with cost basis.  If you bought the home for $100,000 and sold it for $300,000, your gain was $200,000.  Even if you refinanced for $300,000 and received nothing at the closing, your gain is still $200,000 (you received that gain when you borrowed the money, instead of when you sold the house). 

The information and a worksheet are here.

https://www.irs.gov/forms-pubs/about-publication-523

If you owned the home and lived in it as your main home, you may qualify to exclude up to the first $250,000 of gain if single or $500,000 if married filing jointly.  Those rules are also in the linked publication. 

[Mike9241]

it's the Home sale worksheet. to get to it type "home sale" no quotes in the jump to box. 

[fanfare]

except for interest, mortgage debt retired at closing is ignored for home sale reporting purposes.

[Hal_Al]

Q. How do I  determine the amount to report as a capital gain, if any, in the sale of our home in 2025?

A.  TurboTax (TT) does that automatically on the home sale work sheet and reports the taxable amount on form 8949 (even if the amount is 0).  If the gain is fully excludable (less than $250,000, $500,000 Married) and you did not receive a form 1099-S*, TT will give you the option of  reporting the sale on your tax return. 

*The 1099-S is usually included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.