No, it is not important if you know you have no taxable gain because of the $500,000 exclusion. In fact, if you didn't receive 1099-S reporting the sale and you have no taxable gain, you don't have to report the home sale at all.
Note: If you lived and owned your home for at least two years in the 5 year period on the date of sale - you don't have to report the on your tax return- if your gain is less than $250,000 if filing Single (and $500,000 for married filing jointly both spouses must live and own the home for 2 years).
If your gain is larger than the amounts above (or received 1099-S) you must report the sale
- Wages and Income
- Select Less Common Income
- Select Sale of Home
My daughter claimed me as a dependent. I did sell a house for a 5000.00 profit . This was my only income. Do I need to file? Would I benefit filing this to receive stimulus check from corona virus outbreak?