You'll need to sign in or create an account to connect with an expert.
Having a mortgage and building a new home is irrelevant to the sale. If you qualify for a full exclusion and did not receive a 1099-S, you don't have to report it.
New Home
If you are building a house where you bought land and got a construction loan, you can deduct the interest you paid on the construction loan and your property taxes.
Obviously, you can't live in a home while it's being built. Fortunately, the tax law gives you a break here. So long as the home becomes your main home or second home on the day it's ready for occupancy, you can deduct all the interest you paid on the construction loan within 24 months before the home was complete.
If you are building a home with a builder that does not charge you for the home until you close (an "end" loan), then you cannot deduct anything (down payment, etc) until you occupy the home.
If you meet the qualifications to use the exclusion, any gain over that amount is a capital gain. The exclusions are $250,000 for single, and $500,000 for married filing jointly. See the rules below.
Does Your Home Sale Qualify for Maximum Exclusion
The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.
How your sale qualifies. Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
knownoise
Returning Member
saalves2424
New Member
lyratg
New Member
hnpot
Level 2
Nolwen231
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.