You will not do anything in terms of the new home because you are not closing until 2018 so that will go on next year's return.
You won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000.
That income is free and clear as long as:
- You owned the home
- It was your main home for two years or more within the five years leading up to the sale
- You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
You will enter the sale of the home by following the instructions below:
- Click Federal on the left tab
- Click Income and Wages on the top tab
- Scroll down until you get to Less Common Income
- Click Show More
- Then you will go to Sale of Home (gain or loss)
- You will answer the questions accordingly
Yes
No
