Why won't TurboTax Deluxe allow me to exclude the gain on a home that I had lived in for over two years, when I had never previously taken the capital gains exclusion?

[allison-bauer89]

This literally seems like a bug in TurboTax Deluxe.  I was a first-time homeowner who sold my first home after living in it for over two years.  I had a modest gain of under $10,000 but TurboTax keeps saying that my gain is taxable.

[JohnW152]

Try walking through your entries again… it sounds like the exclusion should apply to you.

In TurboTax Online:

1. If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button

2. Click Federal in the left pane, if you’re not already there

3. Click Income & Expenses in the banner

4. Scroll down and click Show more to the right of Less Common Income

5. Click Start or Review to the right of Sale of Home (gain or loss)

6. Review all relevant information on the subsequent screens

See Is the money I made from a home sale taxable? for exclusion information.

[allison-bauer89]

I have been through that screen at least 15 times. I even brough my computer to my dad's house and had him help to make sure I wasn't answering anything incorrectly. I received a 1099-s, upgraded to premium,  and we both believe all questions in the software were answered correctly. There is nothing funny or unusual about my home sale. All signs point to a bug in the software which needs to be addressed. 

[LeonardS]

To report the sale of your home in TurboTax follow these steps:

1. Log into your TurboTax account.
2. Select the Wages & Income tab.Scroll down to less common income select Show more.
3. On the line sale of home (gain or loss) select Start/Revisit
4. On the next screen Sale of Your Main Home select yes.
5. Follow the prompts to enter your sale information

These steps have been verified and will exclude your capital gain of your main home when you qualify for the exemption.

If these steps do not allow you the exemption for your capital gain on the sale of your primary home post a request for additional assistance.

[SweetieJean]

Had you claimed a home office deduction while you owned the home, or rented out any part of it? 

[allison-bauer89]

No to both.

[Opus 17]

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@allison-bauer89 wrote:

I have been through that screen at least 15 times. I even brough my computer to my dad's house and had him help to make sure I wasn't answering anything incorrectly. I received a 1099-s, upgraded to premium,  and we both believe all questions in the software were answered correctly. There is nothing funny or unusual about my home sale. All signs point to a bug in the software which needs to be addressed. 

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No one here can see your account.  You may need to contact customer support and initiate a screen share so the operator can verify what you are doing. 

[allison-bauer89]

I am aware of that... *eyeroll* .....it says not to post anything here and I am not paying to upgrade when there is a bug in the system. The customer service at TurboTax is horrendous. I have already called and at this point think going to TaxSlayer or another program is the best option.

Thank you everyone for your input and best of luck ✌️

[kpenderg]

SAME. Even switched browsers, deleted everything, started over ect.

[allison-bauer89]

Good to know the bug is still not fixed. Tax Slayer software worked with zero issues, had WAY better customer service and was a bit cheaper too. So at least for me I'm done with TurboTax. For anyone else having this issue just switch to Tax Slayer and save yourself a headache 

[Doug93]

Same here. Guess it is time to switch. I'm tired of messing with it.

[AbrahamT]

I was able to get it all in.

First things first , Delete all your input entry from the Sale of the Home.

Next, hit the magnifying glass and type in Sale of House

Then, jump to Sale of Home, then enter adress, Then Sales information,, then Date acquired(remember at least two years or more prior to the Sales date). then cost basis. Then 2 years or more that you lived in the house. Then the next couple of screens, hit no till you get to Good News, your'e entitled to the Exclusion of the Gain like this

Sometimes, in situations like these, it's best to just delete your original input and reenter everything from scratch. One thing is certain, it worked for me.  Good luck!

[allison-bauer89]

Glad it worked for you. This post is a year old at this point. I am happy with TaxSlayer and won't be using TurboTax anymore. I highly recommend them to anyone else having any issues with TurboTax. Their customer service is much better