SALE OF HOUSE
If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)
If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).
- If you are using online TT, you need Premier or Self-Employed software to report the 1099-S
Q. I sold my house in 2020. Do I have to report the sale anywhere on my taxes?
A. Technically no, if you meet the rules for the home sale exclusion (lived in 2+ years and less than $250K/$500K capital gain.
From a practical standpoint, if you get a 1099-S (usually in your closing papers and not sent to you the following January) you should file to avoid an IRS letter. The TurboTax interview handles this properly so the sale is reported but no income is declared.
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