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Level 2
posted Oct 11, 2019 6:45:53 PM

Capital Gain

Why is Turbotax Home & Business calculating that I owe a capital gain tax on the sale of a primary residence when I meet all of the residency requirements?

1 4 1495
4 Replies
Level 15
Oct 11, 2019 7:11:28 PM


@kmwash wrote:

Why is Turbotax Home & Business calculating that I owe a capital gain tax on the sale of a primary residence when I meet all of the residency requirements?


Go back through the Sale of Home section and make sure you have answered all of the questions in each screen correctly - it is easy to miss one.

Level 2
Oct 12, 2019 12:26:48 PM

I've gone through all of the questions to ensure I have answered correctly. The Home Sale questions came up as I was entering Home Office expenses. Is the Capital gain a result of the Home Office?

Level 15
Oct 12, 2019 12:43:35 PM


@kmwash wrote:

I've gone through all of the questions to ensure I have answered correctly. The Home Sale questions came up as I was entering Home Office expenses. Is the Capital gain a result of the Home Office?


Yes. You will have what is known as Unrecaptured Section 1250 gain in the amount of depreciation deductions allowed (or allowable) which will not be excluded (i.e., that part of the gain is taxable).

Level 2
Oct 21, 2019 11:59:28 PM

Thank you! This solved my mysterious "gain" - THANK YOU!