We sold our home in 2017 and made a profit of 70,0000 and reinvested 60,000 to purchase another home in the same year, how list this in turbo tax? I use business turbo.

[simplyaccents]

We took the remain balance of 10,000 and used it to upgrade our new home.  so is my capital gain 70,000 or 10,000?  Since I reinvested this money into my new home?

[CathiM · Accepted solution]

If the home you sold was your primary residence, the IRS has a provision that can help homeowners avoid capital gains on the sale (see below). However, reinvesting the money in a new home does not figure into the capital gain. Hopefully, you qualify for the exclusion below.

To qualify, you must have owned your home and used it as your main residence for at least two years in the five-year period before you sell it. You also must not have excluded another home from capital gains in the two-year period before the home sale. If you meet those rules, you can exclude up to $250,000 in gains from a home sale if you’re single and up to $500,000 if you’re married filing jointly.

If you sell a home that was not a primary residence or that does not meet the above requirements, then you would pay capital gains on that sale.