The provision for postponing capital gains on a home sale, by buying a new home were eliminated in 1997.The new rules say 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 year prior to sale.
The mortgage balance is not relevant. You may add the $150k in home improvements to your original cost basis, as well as any expenses of sale, in calculating your capital gain. Any gain in excess of the $250K/500K will be taxed at long term capital gains rates
The provision for postponing capital gains on a home sale, by buying a new home were eliminated in 1997.The new rules say 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 year prior to sale.
The mortgage balance is not relevant. You may add the $150k in home improvements to your original cost basis, as well as any expenses of sale, in calculating your capital gain. Any gain in excess of the $250K/500K will be taxed at long term capital gains rates
You will owe capital gains taxes on the sale of the primary personal residence if the Sale Price less the Adjusted Basis (Purchase price plus improvements) less Sales expenses is greater than $250,000 if filing as Single or greater than $500,000 if filing as Married Filing Jointly.
The requirement to purchase another primary personal residence at the same or greater price than the sale of the prior home to defer capital gains was removed from the tax code in 1997.
where do I enter capital improvements om home in turbo premier?
this is my primary residence.. using Premier .. where do I enter capital improvements?
In Wages and Income on TurboTax Premier, go to Less Common Income (you'll see the reference to sale of home here). Click on Start for "Sale of Home (gain or loss) ".
Continue through the dialogue for the sale of your home. Eventually, you will come to a screen with the title: "Tell Us About the Purchase of Your Home". On this screen, you enter the original purchase price and "Adjusted Cost Basis". The adjusted cost basis is where you enter capital improvements (click on the "Cost Basis" link to see more information).