Capital gains

Forum|Forum|2 years ago
April 24, 2024
2 replies
55 views

I recently sold my home I live in and won’t be buying another home, I owned the home for 9 years and it was my primary residence, I made less than $40 000 in 2023, what are if any the capital gains tax implications

Ask the Experts - Refund II - April 2024

DawnC

Level 15

There are probably no capital gains implications. You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly). That income is free and clear as long as:

You owned the home.
It was your main home for two years or more within the five years leading up to the sale.
You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

TurboTax will show you if your home sale is taxable by following the instructions provided:

Open or continue your return in TurboTax.
Search for home sale.
Select the Jump to link in the search results.
Answer Yes to Did you sell or have your home foreclosed in 2023? on the Sale of Your Main Home screen.
Follow the instructions to enter your info.

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Anonymous_

Level 15

You should qualify for the home sale (Section 121) exclusion; the entire gain should be tax-free.

See https://www.irs.gov/taxtopics/tc701