If you
meet the requirements of the gain exclusion, you have no reporting requirements
regarding this transaction
Yes, you
can take the gain exclusion as long as you considered the home your
"primary residence" for 2 of the last 5 years. If you have a capital
gain from the sale of your main home, you may qualify to exclude up to $250,000
of that gain from your income. You may qualify to exclude up to $500,000 of
that gain if you file a joint return with your spouse
See this
IRS link for more information on the exclusion:
https://www.irs.gov/taxtopics/tc701.html
Additionally,
please refer to this TurboTax link for more information:
https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Aspects-of-Home-Ownership--Selling...
Please
note that if you get a Form 1099-S for this sale, that means the IRS also got a
copy and you will need to report this information into TurboTax. (But don't
worry, TurboTax will guide you on excluding this gain on your taxes)
To enter
this transaction in TurboTax (you may need to upgrade to premier to enter this
information), log into your tax return and type "1099-s, sale of main
home" in the search bar then select "1099-s, sale of main home"
Say "yes" that you sold your main home and TurboTax will guide you on
entering this information. You will need:
·
The date you sold your home and
the selling price (from your closing statement)
·
The date you bought your home and
the purchase price (from your closing statement)
·
The cost of any major
improvements you made, so we can deduct them for you
·
Form 1099-C if you sold your home
at a loss (short sale)
Just
remember to check the box to have your home sale reported on your tax return
but ONLY if you receive a 1099-S
