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posted Mar 26, 2024 7:30:14 AM

If i did not have an income last year but did sale my primary home of 9 years in Texas and bought a new primary home in Indiana do i have to file a return ?

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3 Replies
Level 15
Mar 26, 2024 7:37:39 AM

You have not provided us with any of the amounts of income involved from the sale of your house in TX.  Buying a new home is irrelevant.   But depending on how much the gain was from the house in TX, or upon whether you ever used the house as a rental property or claimed a home office, you might need to file a tax return.   You have not mentioned whether you have a 1099S from the sale of the 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 Premium software to report the 1099-S

 

 

NOTE:   If you have ever used the home as rental property or claimed a home office, you have more information to enter

 

 

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

 

Expert Alumni
Mar 26, 2024 7:40:24 AM

Maybe.  As long as you owned and lived in the home for two of the five years before the sale, up to $250,000 of profit is tax-free.  And if you’re married and file a joint return, that amount doubles to $500,000.  If your profit from the sale is more than that, the excess is reported as a capital gain. 

 

You may also just want to file a return to record the date of when you sold your home.  You may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

 

 

Level 15
Mar 26, 2024 7:47:15 AM

Q. If i did not have an income last year but did sale my primary home of 9 years in Texas and bought a new primary home in Indiana do i have to file a return?

A. Simple answer: No. 

 

You are allowed to exclude the capital gain on the sale of your home (see qualifying details at other reply).  That means your income for the year is below the filing threshold and you do not need to file a tax return.

 

But, if you received a form 1099-S (usually part of your closing papers), the IRS knows about the large sum you received and there is a good chance of you hearing from them.  Filing to avoid that is frequently recommended.