You always need to report form 1099-S. The gain may not be taxable since it is less than 500K. However, you must meet all of the requirements below.
- You lived in the home as your main home for at 2 of the 5 years preceding the sale.
- Your "net" profit from the sale is less than $250,000 ($500,000 if Married Filing Jointly).
- You didn't take depreciation deduction on the home or use it for business during the time you owned it.
- You didn't rent it out at any time that you owned it.
Please view the Turbo Tax FAQ below for more information about excluding this gain.
Great news! You won’t pay taxes on the first $250,000 (also
known as a gain) you make from the sale of your home. If you file
jointly, you won’t pay taxes on the first $500,000.
That income is free and clear as long as:
- You owned the home
- It was your main home for two years or more within the five years leading up to the sale
- You waited at least two years between selling your
primary home and excluding your first $250,000 or $500,000 from taxes.
In other words, you may buy and sell as many primary homes as you'd
like, but you'll only get this tax benefit every two years.
When you sell a second home, the tax situation is different. Here's that info.
TurboTax will show you if your home sale is taxable, but you’ll need to upgrade your account to TurboTax Premier. Ready to upgrade and enter your home sale info? Follow these steps:
Open (continue) your return in TurboTax. If you’re not sure you’re in your return, click the orange Take me to my return button.
- In the upper right corner, search for home sale and then click the "Jump to" link in the search results.
- Answer Yes to "Did you sell or have your home foreclosed in 2016?"
- You’ll be asked to upgrade to TurboTax Premier. Confirm your upgrade.
- Follow the screens to enter your info.
