Yes, you may have to include the gain on your income tax return.
You can enter the sale of your home in TurboTax to help you determine the amount of taxable gain. (A TurboTax upgrade may be necessary.)
To enter
the sale of your home in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on”
- Scroll down the screen until
to come to the section “Less Common Income”
- Choose “Sale of Home (gain or loss)” and select “start’
If you did not use the home as your primary residence for 2 of the last 5 years and meet the home gain exclusion requirements, you may still be eligible for partial exclusion if you can show the main reason you sold your home was because of a change in workplace location, for health reasons, or because of an unforeseeable event
See this IRS link
for more information on the exclusion:
https://www.irs.gov/taxtopics/tc701.html
