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reclayborn
New Member

I sold my house in Texas for less than 250k, do I need Premier?

Filing jointly, but made less than $250k still.  Will I need a Schedule D or Premiere?
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GeoffreyG
New Member

I sold my house in Texas for less than 250k, do I need Premier?

Probably not.  Though if you have any other sales of capital assets (stocks, bonds, mutual funds, gold coins, etc.) then you would need Premier, or above, in TurboTax online, to generate the necessary Schedule D.

However, if you qualify for what is known as the Section 121 exclusion of gain on the sale of your primary residence, then you don't even have to formally report the home sale to the IRS (and thus you wouldn't need a Schedule D).

Specifically, your house sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.

  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.

  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

If all of these are true, then you don't have to bother with making a reporting entry for your house sale on Schedule D.  Note that this is the case regardless of whether or not you experienced an overall gain (or loss) upon sale.  In other words, losses on the sale of your primary residence are not tax deductible.

If one or more of the above bullet points aren’t true, you might still be eligible for some exclusion of gain.  Please see IRS Publication 523 for more details in that instance:

https://www.irs.gov/publications/p523/ar02.html


The bottom line remains, however, that you won't need TurboTax Premier (or higher) if you won't need Schedule D or some other tax form requiring Premier, such as a Schedule E for rental property.

Thanks for asking this important question!

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1 Reply
GeoffreyG
New Member

I sold my house in Texas for less than 250k, do I need Premier?

Probably not.  Though if you have any other sales of capital assets (stocks, bonds, mutual funds, gold coins, etc.) then you would need Premier, or above, in TurboTax online, to generate the necessary Schedule D.

However, if you qualify for what is known as the Section 121 exclusion of gain on the sale of your primary residence, then you don't even have to formally report the home sale to the IRS (and thus you wouldn't need a Schedule D).

Specifically, your house sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.

  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.

  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

If all of these are true, then you don't have to bother with making a reporting entry for your house sale on Schedule D.  Note that this is the case regardless of whether or not you experienced an overall gain (or loss) upon sale.  In other words, losses on the sale of your primary residence are not tax deductible.

If one or more of the above bullet points aren’t true, you might still be eligible for some exclusion of gain.  Please see IRS Publication 523 for more details in that instance:

https://www.irs.gov/publications/p523/ar02.html


The bottom line remains, however, that you won't need TurboTax Premier (or higher) if you won't need Schedule D or some other tax form requiring Premier, such as a Schedule E for rental property.

Thanks for asking this important question!

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