capitol gains tax

[gz21q2]

I sold a second home and need to report capital gains. I am below the income threshold for paying any. Do I still have to report this. I'm using the online deluxe TurboTax

[Opus 17 · Accepted solution]

If this was your main residence, that you owned for more than 2 years and lived in for at least 2 of the past 5 years, and never used for business, then you can exclude up to $250,000 of gain.  If you gain is less than the exclusion, and you did not get a 1099-S at the closing, you can leave the transaction off your return.

However, if your gain is more than $250,000, or this was not your main home, or you got a 1099-S at the closing to report the sale, then you must report it on your tax return.  It may be below the tax threshold for long term gains, but you have to put it writing and do the math to prove it.  The IRS does not give any credit for any tax benefit unless you put it in writing.  If you don't report it, they can send you a bill for the tax they think you owe. 

The best thing to do is report it in Turbotax and let the program figure out the details.