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jennafusal
New Member

I sold the house I lived in since 2008 on 4/30/19. I purchased my new house 2/6/2019. Proceeds rolled to new house. Do I still need to do Schedule D capital gains?

Took a Line of Credit for the overlap and then paid it off with the sale proceeds. Never made a profit on the sale of first house.
4 Replies
DoninGA
Level 15

I sold the house I lived in since 2008 on 4/30/19. I purchased my new house 2/6/2019. Proceeds rolled to new house. Do I still need to do Schedule D capital gains?

Purchasing another home for the same price or more then the sale price of the prior home to defer the capital gains from the prior home was removed from the tax code in 1997. 

 

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).

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. You will need the online TurboTax Premier or Self-Employed edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

 

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Less Common Income
  • On Sale of Home (gain or loss), click the start or update button

Or enter sale of home in the Search box located in the upper right of the program screen. Click on Jump to sale of home

jennafusal
New Member

I sold the house I lived in since 2008 on 4/30/19. I purchased my new house 2/6/2019. Proceeds rolled to new house. Do I still need to do Schedule D capital gains?

Thank You. I was wondering why I got the 1099-S. Is it because I sold the house after I bought the other one? 

DoninGA
Level 15

I sold the house I lived in since 2008 on 4/30/19. I purchased my new house 2/6/2019. Proceeds rolled to new house. Do I still need to do Schedule D capital gains?


@jennafusal wrote:

Thank You. I was wondering why I got the 1099-S. Is it because I sold the house after I bought the other one? 


That is more than likely the reason you received the Form 1099-S for the sale.

AmeliesUncle
Level 11

I sold the house I lived in since 2008 on 4/30/19. I purchased my new house 2/6/2019. Proceeds rolled to new house. Do I still need to do Schedule D capital gains?


@jennafusal wrote:

I was wondering why I got the 1099-S.  


There is usually a form in the "closing" paperwork that asks a bunch of questions in connection with that.  If you answered something in a way that indicated you MIGHT need to report the sale, they send you a 1099-S.

 

On another note, another scenario is if you ever were eligible to claim deprecation on the home (such as for a Home Office or renting out part of your home), you DO need to report the sale even if you meet the 2 out of 5 year rule.   @DoninGA  , you may want to keep that in mind when responding to these kinds of questions.

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