I sold my home this year & purchased another. What are the tax issues?

[hammondodge]

I also had a professional company do the moving which cost me over $13,000.

[DoninGA · Accepted solution]

The cost of moving from your personal residence is not reported on a tax return.

The purchase of another personal residence is not reported on a tax return.  You can report the mortgage interest paid, the property taxes paid and points paid on a new loan as itemized deductions on Schedule A.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.

[Bsch4477]

Moving expenses are no longer deductible. If you had a profit on your sale greater than any allowed capital gain exclusion you would owe tax on that gain. 

[hammondodge]

Thank you CHAMP Donin!

Hugh

[email address removed]

[xmasbaby0]

Per the tax laws that changed for 2018 and beyond, moving expenses are not deductible on a federal return except for certain active duty members of the military.

There are several states that allow a deduction for moving expenses on the state return:  AZ, AR, CA, HI, IA, MA, MN, NJ, NY, PA and VA  You can enter your moving expenses in the federal software and the information will flow to your state return.

Go to Federal>Deductions and Credits>Other Deductions and Credits>Moving Expenses