For federal tax purposes, there is no "age" special tax treatment for primary home sale.
However, there is an exception called section 121 exclusion, where individuals can exclude up to
$250,000 ($500,000 if Married filing jointly) of gain on the sale of a home if three
provisions are satisfied:
1) Ownership. The individual
owned the home for at least two years during the 5-year period ending on the
date of sale,
2) Use. The individual used the
home as a principal residence for at least two years during the 5-year period
ending on the date of sale, and
3) The individual did not exclude
gain from the sale of another home during the 2-year period ending on the date
of sale.
In Turbo Tax, please follow the steps below:
1. Personal Tab (Federal Taxes for
Deluxe, Premier)
2. Select Personal Income (Wages
& Income for Deluxe, Premier)
3. Scroll down to Less Common Income
3. Select Sale of Home - continue
through the interview; Turbo Tax will determine if you qualify for the exclusion and if you even have to report the sale of your main home.
