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tracita-b
New Member

Where do I record using the proceeds from the sale of a house being reinvested in the purchase of a new house?

 
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2 Replies
ee-ea
Level 15

Where do I record using the proceeds from the sale of a house being reinvested in the purchase of a new house?

Is form 2119 still used?
 Form 2119 was discontinued by the Taxpayer Relief Act of 1997. Since that time, you can not defer capital gains on a home by buying one of equal or greater value.
rjs
Level 15
Level 15

Where do I record using the proceeds from the sale of a house being reinvested in the purchase of a new house?

You don't record it anywhere. The ability to defer the tax on the sale of your home by using the proceeds to buy a new home was eliminated from the tax law 25 years ago, in 1997. It was replaced by an exclusion of gain on the sale of your main home. When you enter the sale of your home, TurboTax will ask you questions to determine whether you qualify for the exclusion of gain.


However, the tag below your question indicates that you are using TurboTax Live Basic. You will not be able to report the sale of your home in Live Basic. You will have to upgrade to Premier or Self-Employed, or use any version of the CD/Download TurboTax software.

 

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