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It depends.
If your primary residence was either a rental or you took a home office deduction a some point prior to selling, you will need to recognize a capital gain on the recapture of prior depreciation expenses. If it was not used for either purpose in the past and you are claiming the home gain exclusion, then you will not need to report this sale on your tax return.
According to the IRS, you sell a property that was used as a rental or was used as a home office, you must pay 25 percent recapture tax (also referred to as Section 1250 recapture) as well as regular state income tax on the depreciation you claimed. (Remember the IRS will assume that you claimed the correct amount of depreciation every year—this is true regardless of whether you actually claimed any depreciation on your tax return).
See Sale of Your Home for more information on the exclusion.
You do not need to enter the sale of your primary residence if:
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion.
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S
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