I didn’t add that I sold my home will that affect my tax return?

Yanira_06 · ‎February 3, 2021

JeffreyR77 · ‎February 3, 2021

It depends. The sale of many primary homes do not have any tax implications.

If you lived in your home for all of the time you owned it and sold it for a net profit of less than $250,000 more than you paid for it (or $500,000 if you are married) than there is no tax implication.

If the home was a rental property for any period that you owned it or any portion of it was used for business while you owned it, you will need to amend your tax return to report any capital gain or loss related to the business use period.

If your profit was more than the $250,000 ($500,000) you will also need to amend to report the capital gain and pay additional tax.

This link provides good information on the various ways the sale of a residence may create a tax event.

I Sold My Home - Do I Owe Tax?

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JeffreyR77 · ‎February 3, 2021

It depends. The sale of many primary homes do not have any tax implications.

If you lived in your home for all of the time you owned it and sold it for a net profit of less than $250,000 more than you paid for it (or $500,000 if you are married) than there is no tax implication.

If the home was a rental property for any period that you owned it or any portion of it was used for business while you owned it, you will need to amend your tax return to report any capital gain or loss related to the business use period.

If your profit was more than the $250,000 ($500,000) you will also need to amend to report the capital gain and pay additional tax.

This link provides good information on the various ways the sale of a residence may create a tax event.

I Sold My Home - Do I Owe Tax?

I didn’t add that I sold my home will that affect my tax return?