Capital Gain Tax on Primary Residence

[Tuck303]

I am 82 years old and my wife passed away in 2020 so I sold our home this year for $385,000.  We bought it in 1998 for $98,200.  Do I have to pay capital gain tax on any profit over $250,000?  I have always used the free version of Turbo Tax.  Will I be able to use this version to do this years taxes since I have to include this?  Also, I have moved in with my son and am wondering if there is any tax benefit for him since I am living in their house.  Thank you for your help.

[DoninGA]

You may take the $500,000 capital gain exclusion of you sold the home within 2 years from the date of your spouse's passing.  Otherwise your exclusion will be $250,000 if you owned and lived in the home for at least two years in the five year period on the date of sale.

[DoninGA]

If you do have a capital gain on the sale then you will have to use the TurboTax Premier online edition to report the sale.

Your son cannot claim you as a dependent under the Qualifying Relative rules if your gross income from tax year 2022 is $4,400 or more.  If you are not his dependent then there are no tax benefits for your son while you are living in his home.