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You don't record it anywhere. The ability to defer the tax on the sale of your home by using the proceeds to buy a new home was eliminated from the tax law 25 years ago, in 1997. It was replaced by an exclusion of gain on the sale of your main home. When you enter the sale of your home, TurboTax will ask you questions to determine whether you qualify for the exclusion of gain.
However, the tag below your question indicates that you are using TurboTax Live Basic. You will not be able to report the sale of your home in Live Basic. You will have to upgrade to Premier or Self-Employed, or use any version of the CD/Download TurboTax software.
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