Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
jan357
New Member

I sold my home in 2020. Lives there as main residence for 14 years. Was sold way under 250k. Do I put anything on my taxes when filing showing sale?

 
1 Reply
Opus 17
Level 15

I sold my home in 2020. Lives there as main residence for 14 years. Was sold way under 250k. Do I put anything on my taxes when filing showing sale?

even if you lived in the home as your main home and you lived there and owned it for more than two years, you must list the sale on your tax return if any of these conditions is true:

1. you received a 1099-S form at the closing.

2. You ever used the home in business and took a home office deduction.

3. You ever rented part of the home to other tenants.

 

If you received a 1099 – S form, you must list the sale on your tax return even though no tax will be owed. If you don’t list the sale, the IRS will send you a nasty letter because they also got a copy of the 1099 – S.

 

If you ever used the home in business or as a rental, then you must pay recapture tax on any depreciation that you took or could’ve taken when you used the home for business, even though you may be exempt from ordinary capital gains tax.

 

If you list the sale in TurboTax, it will ask you about all of these conditions and if you are not required to report to the sale on your tax return, TurboTax will automatically leave it off. If you know that none of the special conditions apply and that you do qualify for the exclusion, you can skip entering the sale entirely if you prefer.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.46m
Members

2.57m
Discussions

Manage cookies
v