Year 2024 in California Sold my home and purchased another

[mvdiaz22]

We sold our home of 40 years for $1.4, which was amazing, however, originally we purchased for $145,000; we file jointly so I know that we have $500k exclusion.  We did receive a form 1099-S so I know I have to report the sale but we also purchased another home cash for $850k.  I don't see anywhere in Turbo Tax where I can report the gains being used to buy another home.  As it stands right now, we owe IRS $109k.

[DoninGA]

The purchase of a new home is not reported on a tax return.  The option to defer capital gains by purchasing another home at the same price or more then the selling price of the old home was removed from the tax code in 1997.

[xmasbaby0 · Accepted solution]

Buying another home with the proceeds of the sale of your old home has been irrelevant since 1997.   You used to be able to avoid capital gains by purchasing another home of equal or greater value.  That law went away after 1997 and now you get the $500K exclusion  on a joint return instead, so, sorry, but you are going to have some capital gains tax to pay.