We filed a joint returns and just sold our condo, TurboTax only allow us to claim $250,000 exclusion instead of $500,000 even though we met all of the tests

[DoninGA]

Go back through the sale of home section and review your answers to the questions.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)

Selling cost can include escrow fees, legal fees, real estate agent commissions, advertising costs, and even home staging fees.

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premium edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

[DianeW777]

It depends. The answer assumes your condo home was never used as a rental home at any time.

It's important to answer all the questions carefully and review the qualifications below.

Qualifying for the exclusion

In general, to qualify for this exclusion, you must meet both the ownership test and the use test. If you are filing jointly with your spouse, either you or your spouse must meet the ownership test while both you and your spouse must meet the use test individually.

• If you or your spouse owned the home for at least 24 months (2 years) out of the last 5 years leading up to the date of the sale, you meet the ownership test. 
• If you and your spouse owned the home and used it as a residence for at least 24 months (2 years) of the previous 5 years, you meet the use test. 
• You can meet the ownership and use tests during different 2-year periods. 
  • However, you must meet both tests during the 5-year period ending on the date of the sale. Generally, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 
  • Refer to Publication 523 for the complete eligibility requirements, limitations on the exclusion amount, and exceptions to the two-year rule.
  • Where do I enter Form 1099-S?

@dvdbuddy