turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Second house built, but selling main one as soon as the second is ready

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
Hal_Al
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Second house built, but selling main one as soon as the second is ready

It is no longer required to buy a new home to exclude the profit on the sale of your old home (that went out about 25 years ago).

All that's needed is that you owned and lived in your old house, as your primary residence,  for 2 years out of the 5 years prior to the sale. 

 

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

 

In TurboTax, enter at: 

- Federal Taxes tab

 

 - Wages & Income

 

Scroll down to:

 

-Less Common Income

 

     - Sale of Home

View solution in original post

3 Replies

Second house built, but selling main one as soon as the second is ready

 

Second house built, but selling main one as soon as the second is ready

@eduardtorar one has nothing to do with the other.  Selling your home gets recorded on your tax return (under most but not all circumstances).  The purchase does not impact the tax return.

Hal_Al
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Second house built, but selling main one as soon as the second is ready

It is no longer required to buy a new home to exclude the profit on the sale of your old home (that went out about 25 years ago).

All that's needed is that you owned and lived in your old house, as your primary residence,  for 2 years out of the 5 years prior to the sale. 

 

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.

 

In TurboTax, enter at: 

- Federal Taxes tab

 

 - Wages & Income

 

Scroll down to:

 

-Less Common Income

 

     - Sale of Home

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question