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hnguyen7583
New Member

I sold my home in 2017 after 20 years live in. Do I have to pay tax. Thanhks

 
2 Replies
Carl
Level 15

I sold my home in 2017 after 20 years live in. Do I have to pay tax. Thanhks

Yes, if you sold it at a gain.
Critter
Level 15

I sold my home in 2017 after 20 years live in. Do I have to pay tax. Thanhks

Maybe, depends on the amount of the profit. 

Form 2119 was discontinued by the Taxpayer Relief Act of 1997. Since that time, you can not defer capital gains on a home by buying one of equal or greater value. What you can do, if you owned and lived in the home for 2 of the 5 years ending on the sale date, is to not have to pay tax on a gain of up to $250,000 (Single), or $500,000 (Married Filing Jointly). Note that if you ever used the home as a rental, then the exclusion does not apply to any gain equal to the depreciation that you claimed or could have claimed.
For further info, see IRS Pubs, 530, 523, and 17


http://www.irs.gov/pub/irs-pdf/p530.pdf
http://www.irs.gov/pub/irs-pdf/p523.pdf
http://www.irs.gov/pub/irs-pdf/p17.pdf

 

 

The TurboTax program will cover this partial exclusion in the Sale of Home interview -

·         Click on Federal Taxes

·         Click on Wages and Income

·         Click on I'll choose what I work on

·         Scroll down to Less Common Income

·         On Sale of Home (gain or loss), click on the start or update button


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