Solved: Is primary home sale taxable in Colorado? If no, why does it show in Turbo tax as a gain?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
leo-rmundt
New Member

Is primary home sale taxable in Colorado? If no, why does it show in Turbo tax as a gain?

 
1 Best answer

Accepted Solutions
Cindy0H
New Member

Is primary home sale taxable in Colorado? If no, why does it show in Turbo tax as a gain?

There is a Colorado Source Capital Gains & Losses (see screenshot) that you can take if you qualify. So if you do have a gain, despite the exclusion, it will not be taxed in Colorado if you can take the subtraction.

In Colorado and on your federal return, most of the time, you won’t have to worry about capital gains tax unless you’re an investor. The IRS allows you to exclude up to $250,000 of capital gains on real estate if you’re single or $500,000 if you’re married filing jointly. However, you’ll lose that benefit if the home wasn’t your primary residence, you owned the home for less than two years in the five years before selling it, you didn’t live in the house for at least two of those years, you already claimed the exclusion on another home in the past two years or you swapped the home in a 1031 exchange. 

If you have other questions about this, ask in the comment section below.

View solution in original post

1 Reply
Cindy0H
New Member

Is primary home sale taxable in Colorado? If no, why does it show in Turbo tax as a gain?

There is a Colorado Source Capital Gains & Losses (see screenshot) that you can take if you qualify. So if you do have a gain, despite the exclusion, it will not be taxed in Colorado if you can take the subtraction.

In Colorado and on your federal return, most of the time, you won’t have to worry about capital gains tax unless you’re an investor. The IRS allows you to exclude up to $250,000 of capital gains on real estate if you’re single or $500,000 if you’re married filing jointly. However, you’ll lose that benefit if the home wasn’t your primary residence, you owned the home for less than two years in the five years before selling it, you didn’t live in the house for at least two of those years, you already claimed the exclusion on another home in the past two years or you swapped the home in a 1031 exchange. 

If you have other questions about this, ask in the comment section below.

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings