Solved: I sold my main house and bought a new main house in 2016
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I sold my main house and bought a new main house in 2016

I am using turbo tax premier, it did ask me about the sale of my main house but it did not ask me info about the purchase of my new main home for 2016
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I sold my main house and bought a new main house in 2016

The sale of a personal residence and then purchase of another are two independent transactions. The ability to defer capital gains on a home by purchasing a new one was removed from the tax code in the 1990s. Now you can not defer capital gains no matter what you do with the money.


The purchase of a new personal residence is not a reportable event.
You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at
Federal Taxes (or Personal if using Home and Business)
Deductions And Credits
choose I'll choose what I work on, if asked OR Jump to Full List
My Home

All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell.

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Highlighted
Alumni

I sold my main house and bought a new main house in 2016

The sale of a personal residence and then purchase of another are two independent transactions. The ability to defer capital gains on a home by purchasing a new one was removed from the tax code in the 1990s. Now you can not defer capital gains no matter what you do with the money.


The purchase of a new personal residence is not a reportable event.
You can deduct mortgage interest, points, and real estate property tax paid at closing. You report those expenses along with other mortgage interest/property taxes paid in the year at
Federal Taxes (or Personal if using Home and Business)
Deductions And Credits
choose I'll choose what I work on, if asked OR Jump to Full List
My Home

All other costs paid at closing, including transfer taxes, "stamps", escrow fees, etc., are NOT deductible from current income, instead you add them to the cost basis of your home and you will get the benefit when you sell.

View solution in original post

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