turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

We purchased another home with the proceeds.  Will the sale of that home then require the report from the sale of the last one, problems from reporting or not reporting when not required?
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

Home buy/sells are independent transactions now (no basis carryover). 
Instead, as in your case, the tax is zero.
What more could you ask?

View solution in original post

6 Replies

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

Home buy/sells are independent transactions now (no basis carryover). 
Instead, as in your case, the tax is zero.
What more could you ask?

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

Note: if you have a 1099-S, IRS requires you to put the sale on your tax return.

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

Thank you.  We did not receive a 1099-S form.  Since filing the rollover gain on a homestead is optional in our case, I seek advice from others with more experience with the IRS in this matter.

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

Do you have more than one residence which you might also  sell  in the next few years?

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

No.  But that is certainly a consideration.

We did not have enough gain on the sale of our home to pay tax on it. Should we report the transaction details or not? Benefit of doing so or not?

More information on the non-carry-over feature of selling one's primary residence.


EXCLUSION REQUIREMENTS
IRC section 121 allows a taxpayer to exclude up to $250,000 ($500,000 for certain taxpayers who file a joint return) of the gain from the sale (or exchange) of property owned and used as a principal residence for at least two of the five years before the sale. A taxpayer can claim the full exclusion only once every two years. A reduced exclusion is available to anyone who does not meet these requirements because of a change in place of employment, health or certain unforeseen circumstances. Unlike under former law, the gain on the sale of a house is now permanently excluded, rather than deferred, and a taxpayer doesn’t have to purchase a replacement home to exclude the gain.

If a taxpayer excludes the entire gain on the sale from income, the transaction is not reported on his or her tax return. If any part of the gain is taxable, he or she reports the sale on schedule D of form 1040. Alternatively, a taxpayer can elect to include the gain from a sale by reporting it on his or her tax return. For example, someone who realizes gains on the sale of two principal residences within two years can exclude the gain on only one. Most would want to recognize the smaller gain and exclude the larger. Since the exclusion applies automatically to the first disposition, a taxpayer would need to elect to be taxed on this one if it is the smaller of the two.
- See more at: http://www.journalofaccountancy.com/issues/2002/oct/thehomesalegainexclusion.html#sthash.n8AYZ0UA.dp...

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies