Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Oct 30, 2024 4:49:33 PM

Determining capital gains for sale of primary residence and adjoining property in two transactions

This year we sold our primary residence in two transactions. The first transaction included the house and its property. Three months later we sold the adjoining property that included a barn.  Looking at IRS publication 523 it appears that both transactions can be treated as a single transaction as far as reporting the sale of a primary residence and determining capital gains. Am I correct in my interpretation?

0 3 19683
3 Replies
Level 15
Oct 30, 2024 5:16:19 PM

Duplicate 

Level 2
Oct 30, 2024 5:37:29 PM

I realize this is a duplicate request, but I was not as clear with some of the questions in my original post.  Hopefully someone will respond to either of the posts.

Employee Tax Expert
Oct 31, 2024 8:28:46 AM

Hello jarvfam01, congratulations on the sale of your primary residence.

 

I've reviewed Pub 523 and would agree for tax purposes you would report it as one transaction and use the exclusion on the sale of a primary residence once only.