Purchase of new home and sale of old home in different years

[Claude B]

We bought a new home in 2024 but didn't get our old home sold until 2025.  Do we treat the sold home as the sale of a second home?  We owned the old home for 29 years. Also, we are filing as Married Filing Separately. 

[Claude B]

I should probably add that we cleared $14,000 from the sale of the old home after paying off the mortgage of the new home.

[MaxA1]

No.  This should be considered a sale of your main home since it was your primary residence for 2 out of the last 5 years.  Since you're filing separately, you will split the proceeds from the sale 50/50 on each return.  See the following links for more information on the tax implications on the sale of your home:

• Tax Aspects of Home Ownership: Selling a Home
• I sold my home. What can I deduct?
• How does selling a home affect my taxes?
• What does buying a home mean for my taxes?

[Claude B]

Just to be clear, we are splitting the $14k between both returns and not the full sale price of the home minus expenses?  I ask because the sale price was $299k and I'm reading that we are taxed only on profits.

[MaxA1]

Split the full sale price of the home minus expenses.  See the following link on how to enter this into TurboTax:

• Where do I enter Form 1099-S?

[Claude B]

Thank you.  I haven't been able to locate a 1099-S but I will be in touch with the settlement company to inquire.  I am quite the nerd about keeping files and it seems unusual that I don't have one.  Thanks again.

[BillM223]

The 1099-S is not always required to be generated, for example, on a house sold by a married couple for less than $500,000.

If the company is not inclined to issue you a copy of the 1099-S, based on what you have said, I would not worry about the lack of the form, and just continue with your return.