Sale of Home: Eligibility test step 5

[jameszees]

Hello,

I am working on my 2024 taxes and trying to classify the sale under the exemptions portion of the eligibility test as copied here:

The Eligibility Test determines whether you are eligible for the maximum exclusion of gain ($250,000 or $500,000 if married filing jointly).

The specific section I need to file is remainder interest:

Eligibility Step 5—Exceptions to the Eligibility Test

• You owned a remainder interest, meaning the right to own a home in the future, and you sold that right. See Remainder interest.

Remainder interest. The sale of a remainder interest in your home is eligible for the exclusion only if both of the following conditions are met.

• The buyer isn’t a “related party.” A related party can be a related person or a related corporation, trust, partnership, or other entity that you control or in which you have an interest.
• You haven't previously sold an interest in the home for which you took the exclusion.

If someone qualifies for the eligibility test (or exemptions) they are granted the full amount of capital gain exclusion based on their filing status.  Worksheet 1 is used to determine the amount of exclusion.

The problem I am having is that I can only determine my eligibility by way of time living in the house with the current 2024 software.

Are you planning to add the remainder interest exemption to the software?

Thank you.

[DavidD66]

I can't answer whether or not TurboTax is going to add the remainder interest exemption, and you probably won't get an answer to that question on this forum (at least not from anyone that really knows).  Qualifying to exclude a gain based on eligibility due to a remainder interest exception are not common; therefore, it is one of the tax scenarios that isn't supported by the software.  You can still claim the exemption.  Answering the questions regarding time living in the house in order to get the program to give you the exemption will not cause any problems. That information is only used by TurboTax.  Those answers are not a part of your tax return and are not included in what is transmitted to the IRS.