We sold our house to my husband's job through a relocation buyout agreement. They paid off our loan and issued us our equity. Will we have to pay taxes on this money?

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We sold our house to my husband's job through a relocation buyout agreement. They paid off our loan and issued us our equity. Will we have to pay taxes on this money?

No.

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 years prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents.

Even if you got a 1099-S, TurboTax can handle it being reported without being taxed.

In TurboTax (TT), enter at:

- Federal Taxes tab

- Wages & Income

Scroll down to:

-Less Common Income

- Sale of Home

Job relocation is an exception to the 2 year rule. Your new job location must be at least 50 miles farther from the sold home than the old job location. You are entitled to a prorated amount of the $250,000 ($500,000 married) exclusion. Example : if you lived in the old home 438 days you could exclude up to 60% {438/(365x2)} or $150,000. The exception is allowed if the move was for employment or health reasons or "unforeseen circumstances".

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We sold our house to my husband's job through a relocation buyout agreement. They paid off our loan and issued us our equity. Will we have to pay taxes on this money?

No.

The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 years prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents.

Even if you got a 1099-S, TurboTax can handle it being reported without being taxed.

In TurboTax (TT), enter at:

- Federal Taxes tab

- Wages & Income

Scroll down to:

-Less Common Income

- Sale of Home

Job relocation is an exception to the 2 year rule. Your new job location must be at least 50 miles farther from the sold home than the old job location. You are entitled to a prorated amount of the $250,000 ($500,000 married) exclusion. Example : if you lived in the old home 438 days you could exclude up to 60% {438/(365x2)} or $150,000. The exception is allowed if the move was for employment or health reasons or "unforeseen circumstances".

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