House Sale

[panchosaxby]

Sold a house last year and curious about taxes.  Also missing an admended refund from 2020 we file thru turbotax....

[xmasbaby0]

Even during “normal” times it takes about four months for the IRS to process an amended return.  During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns.  Do not expect quick results from amending.  When the IRS issues a refund for an amended return it will be by check.  They do not make direct deposits for refunds for amended returns.  You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

SALE OF HOUSE

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

• If you are using online TT, you need Premier or Self-Employed software to report the 1099-S
• .https://ttlc.intuit.com/questions/1901135-i-sold-my-home-at-a-loss-is-this-deductible

[JamesG1]

Was the house that was sold your personal residence?  Or a rental or investment property?  Or a vacation home?

If you sold your primary residence and lived in and owned the home for at least two years in the five year period before the date of sale, you can exclude up to $250,000 of gain.

Properties other than a personal residence have quite different rules.

Things are very slow the the IRS.

I paper-filed a 2018 Federal 1040X in August 2020.  It took the IRS over a year to acknowledge receipt of the amended tax return and just recently reported that it has been processed.  Still do not have a refund.

[panchosaxby]

How do they define "gain"?

[MarilynG1]

What you paid for the home, plus major improvements is the Cost Basis of your home.

The Cost Basis + Sales Expenses are subtracted from the Sales Price to determine your Gain/Loss.

Or, Cost Basis - Net Proceeds (sales price with sales expenses subtracted). 

This link has more detail on Calculating your Home Basis.