Single,lived in my home for 8 years,sold for 300k and bought a new primary home in the same town. 1099 was required due to value. Do I have to pay tax on capital earned?
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Single,lived in my home for 8 years,sold for 300k and bought a new primary home in the same town. 1099 was required due to value. Do I have to pay tax on capital earned?

I was limited on the title, so I will provide a more detailed question here.

I am single, I do my own taxes with turbo tax have been for years. I lived in my previous home for more than 8 years. In February of 2019 I bought a new property in the same city as my primary residence; I posted my now "old" home for sale and it just recently sold for more than 250k.

At the title company while signing documents, a 1099 was required due to the house value being more than $250k for single persons, so the IRS has a record of the sale. With that being said, my question is do I have to pay taxes on the capital earned from the old property? especially if there is a new home that was purchased as a primary replacement residence?

Thanks!

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Single,lived in my home for 8 years,sold for 300k and bought a new primary home in the same town. 1099 was required due to value. Do I have to pay tax on capital earned?

If you qualify for the exclusion, you may end up with zero taxable gain. If not, the gains are taxable.

If you meet the qualifications to use the exclusion, any gain over that amount is a capital gain. The exclusions are $250,000 for single, and $500,000 for married filing jointly. See the rules below.

Does Your Home Sale Qualify for Maximum Exclusion

The tax code recognizes the importance of home ownership by providing certain tax breaks when you sell your home. To qualify for these breaks, your home must meet the Eligibility Test , which is explained later.

How your sale qualifies.   Your sale qualifies for exclusion of $250,000 gain ($500,000 if married filing jointly) if all of the following requirements are met.

  • You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
  • You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
  • You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.

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New Member

Single,lived in my home for 8 years,sold for 300k and bought a new primary home in the same town. 1099 was required due to value. Do I have to pay tax on capital earned?

Thanks Coleen.
As stated in my notes, I am single and the home sold value was for more than $250k. Based on your bullets, I owned my home for more than 8 years as a primary residence.
I didn't do a 1031 exchange or a like-kind exchange.
I didn't claim any exclusions for anything as I didn't own any other properties.

When you say My home qualifies for the $250k exclusion gain, that is capital of $250k gain? as in.. I earned capital of $250k of less, I do not have to pay taxes? or the $250k exclusion gain is based on the sold home value? so if I sold my home for more than $250k, I am single, I have to pay tax on the capital gain?

Thanks again
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New Member

Single,lived in my home for 8 years,sold for 300k and bought a new primary home in the same town. 1099 was required due to value. Do I have to pay tax on capital earned?

If your gain was less than the $250k exclusion, you do not have to pay tax on it since there is no gain. If you did not receive a 1099-S, you don't even have to report it.
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