Sale and purchase of home in 2022

[mobymatt]

I sold and purchased a primary residence in 2022.  I did receive a1099 S and have recorded that info in my turbo tax return.  I do not think the gain is taxable based on what I have read, but I can not find anywhere in turbo tax to offset the gain showed on 1099 S.  My current return is showing me owing 54,000 federal tax, where as it was at $2,000 refund before adding 1099S.  Please tell me what section to enter the offset purchase of the new home. TIA

[DoninGA]

There is no offset on the purchase of another primary residence after the sale of the first residence.

The tax code was changed in 1997 so that you can no longer defer the capital gains on the sale of a personal residence by purchasing another residence for the same price or higher then the sale price of the first residence.

[NCperson]

@mobymatt how much was the gain on SALE?  did Turbo Tax record the capitaal gains exclusion?  To be eligible you must have lived in and owned your home for 2 of the 5 years counting back from the closing date. 

The exclusion is $250,000 (fling SINGLE) or $500,000 (filing JOINT)

[Mike9241]

did you use the home sale worksheet to determine if you meet the ownership and use tests? you do not put the sale directly on the 8949 

[rjs · Accepted solution]

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@mobymatt wrote:

I can not find anywhere in turbo tax to offset the gain showed on 1099 S.

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Form 1099-S does not show the gain. It shows the proceeds from the sale. The gain is the proceeds shown on the 1099-S, minus your basis and selling expenses. Your basis is what you paid for the home plus the cost of any improvements.

Here's how to enter the sale of your primary residence in TurboTax.

• Click Federal Taxes.
• Click Wages & Income.
• Click "I'll choose what I work on."
• On the screen "Your 2022 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start, Update, or Revisit button for "Sale of Home (gain or loss)."

When you get to the screen that asks for your basis, there is an EasyGuide to help you calculate the basis.

TurboTax will then calculate the gain, and ask questions to determine whether you qualify for the exclusion of gain.