Sold a Home - Stating I owe capital gains?

[SJHazelwood]

I'm attempting to wrap up the sale of a home that I owned with my brother. It was our main residence from 2008-2021, had no other properties. 

Entering the details for the sale we both split the cost 50/50. 

The total sale price was 300k (minus 20k for seller expenses). Original purchase price was 120k. 

When filling out the details we both stated that we sold the home for 150k, sellers fees at 10k, and our purchase price was 60k. 

The net difference is 80k each, which is well below the $250,000 single threshold, and yet it is showing I owe nearly 12,000 in capital gains tax? Are there issues with the platform, or am I missing something? Are the earnings really taxable for underneath 250k?

[Mike9241]

you'll have to revisit how you entered the sale. if you both owned and occupied the house for any 2 out of 5 years before sale, which you say you did,  you both should qualify for the $250,0000 home sale exclusion

we can't see your entries.   if you still having trouble you'll need to contact support which you can allow to review your return. 

did you enter the sale in the home sale section - the proper place on through 1099B reporting which can't deal with a home sale.

[HelenC12]

Yes, you're missing something and no, earnings under $250K, on the sale of your main house are not taxable if you've lived there for two of the last five years. If you're showing a gain, you've entered something incorrectly.

I tried to recreate your situation and I noticed that TurboTax initially adds the tax but when I continue with the onscreen interview and answer the follow up questions about my main residence, the tax is removed. Did you continue until the end of the onscreen interview?

Please see how to enter your main home sale below. 

• Make sure you enter the correct Date Bought or Acquired to reflect the fact that you've lived in it since 2008.

TurboTax will show you if your home sale is taxable.

1. Open or continue your return in TurboTax
2. Search for home sale
3. Select the Jump to link in the search results
4. Answer Yes to Did you sell or have your home foreclosed in 2021? on the Sale of Your Main Home screen
5. Follow the instructions to enter your info