1099-s for main home not allowing exlusion in turbotax

[hollymortensen]

Hi.  I bought my main residence in Aug. 2023 and sold it in Oct. 2025.  I lived there for over 2 years.  I received a 1099-S after the sale.  When I enter the 1099-S in turbotax, it is not giving me the $250,000 exclusion and I don't know how to get it. 

[DoninGA]

If you entered the date of purchase and the date of sale correctly and noted that you lived in the house for at least two years, you should have been given the exclusion.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale)

Selling cost can include escrow fees, legal fees, real estate agent commissions, advertising costs, and even home staging fees.

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premium edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

[hollymortensen]

Thank you for your quick response!  I am using Deluxe installed on my computer. I went through the questions about 5 times.  There was nothing that asked about how long I lived there.  I entered the purchase date of 8/29/23 and sale date of 10/29/25.  But there were no questions about how long I lived there.

[DoninGA]

@hollymortensen In the Sale of Home section, after the screen Loss of Spouse is the screen Time Lived in Home where you need to select Yes for living in the home for at least 24 months since 10/29/2020.

[Mike9241]

Did you enter it directly on Form 8949 or Schedule D? The info needs to be entered on the Home Sale Worksheet in TurboTax so you can answer the questions to get the exclusion.  

[JohnB5677]

Let's be sure you're posting it in the correct place.

Sale of your primary home.  

1. You will need
   1. You will usually get a 1099-S that will show
      1. Sale Date
      2. Proceeds (Selling price)
   2. You will also need:
      1. Purchase date
      2. Purchase price
      3. Improvements
2. Log into TurboTax
3. Under Federal
4. Select Wages & Income
5. [I'll choose what I work on]
6. Scroll way down to Less common Income.
7. Sale of Home (Gain or Loss)
8. If the home was your primary residence for 2 of the last 5 years, you may not owe taxes on the gain ($250k single/$500k married)

[hollymortensen]

I will try that.  Thank you.

[DoninGA]

@hollymortensen I posted that procedure in the first answer on this thread.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button