Sold home, moved, and bought new home. Which is considered new home and do i enter in purchase of new home anywhere?

[leahfouch]

I can't find where to enter in the purchase of my new home. Is the home I just sold and lived in most of the year considered my main home? I'm so confused as to why it never asked me if I bought a new home

[MargaretL · Accepted solution]

Although the purchase of your new home is never reported on your tax return, you can still deduct home mortgage interest, real estate taxes, Primary Mortgage Insurance and Points paid on your purchased home. You should be receiving Form 1098 and, if not all items paid are listed, you may look at your HUD-1 statement. You may also be receiving Form 1098 for your original house (the one you sold) and you can deduct the above items as well.

The sale of your home is reported only if you have taxable gain or received Form 1099-S. Please use the steps below to report it; Turbo Tax will determine if you have taxable gain:

1.  Wages and Income, Jump to Full list

2. Select Less Common Income

3. Select Sale of Home

Note: individuals can exclude up to $250,000 ($500,000 if Married filing jointly) of gain on the sale of a home if three provisions are satisfied:

1) Ownership. The individual owned the home for at least two years during the 5-year period ending on the date of sale,

2) Use. The individual used the home as a principal residence for at least two years during the 5-year period ending on the date of sale, and

3) The individual did not exclude gain from the sale of another home during the 2-year period ending on the date of sale.