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l-q2006
New Member

I sold a home in 2016 and put the proceeds into my next home. it is charging me capital gains on the proceeds and is not asking if I bought another home?

I have always bought and sold homes because I have reinvested the proceeds in my next home. Why am not given the opportunity in Turbo tax to file the proceeds as reinvested in my new home, instead of being charged capital gains?
1 Reply
Texas Roger
Level 15

I sold a home in 2016 and put the proceeds into my next home. it is charging me capital gains on the proceeds and is not asking if I bought another home?

The requirement to reinvest proceeds from the sale of a home into the next home hasn't been in the tax law for many years. If you lived in the home you sold for at least 2 years out of the 5 years ending on the date of sale, you are allowed to exclude up to $250,000 of capital gain ($500,000 if MFJ) from capital gains taxes. 

This can be affected if you had any home office deductions or rented out the house while you owned it. 

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