Sale of home, purchase new home

[ratclima]

TT won't let me enter my sale of home date BEFORE purchase of new home, but that is what happened

[DS30 · Accepted solution]

Entering the date for the sale of your home should not be affect by the purchase date of your new home (you only need to enter the purchase date of your original home in the sale of home section). Since there is no longer a home gain rollover exclusion, these 2 events will be considered separate transaction (you will not need to report the purchase of your new home on your tax return).

You do not need to enter or report the sale of your primary residence if:

• You never used your primary residence as a rental or took home office deduction
• You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
• You did not receive a Form 1099-S and
• You meet the home gain exclusion (see below)

You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See  Sale of Your Home for more information on the exclusion.

If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:

1. Once you are in your tax return (for TurboTax Online sign-in, click Here), click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose “Sale of Home (gain or loss)” and select “start’
6. You will want to use the "Easy Guide" to determine the adjusted basis on this home 

Say "yes" that you sold your main home and TurboTax will guide you on entering this information.  You will need:

• The date you sold your home and the selling price (from your closing statement)
• The date you bought your home and the purchase price (from your closing statement)
• The cost of any major improvements you made, so we can deduct them for you
• Form 1099-C if you sold your home at a loss (short sale)

Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S

[jdgancayco]

HOW DO I REPORT THIS ON MY TAXES.  WHAT FORMS DO I NEED, ETC.  WE SOLD THE HOME I RUN MY CHILD CARE BUSINESS OUT OF AND BOUGHT A NEW HOME AT THE SAME TIME TO RUN MY CHILD CARE BUSINESS OUT OF.  I NEED TO KNOW HOW TO NAVIGATE TO THE FORMS I NEED TO FILL OUT FOR THIS.

[jdgancayco]

I DID USE THE HOME OFFICE DEDUCTION AS I RUN A CHILDCARE BUSINESS OUT OF MY HOME AND CONTINUE TO DO SO IN MY NEW HOME. 

[Mike9241]

you use the home sale worksheet. in addition, answer yes to depreciation taken after 5/6/1997. on the next screen, you'll enter the depreciation you took on the home for the part that was used for child care.   

[Carl]

I've seen this happen when folks answer one of the interview questions wrong.

When you first get started with the program, one of the questions asked is something like "did you own a home in 2020?" If you answer that question no, then it's rather difficult to report the sale of something you told the program you did not own.