How does buying/selling a home affect my taxes?

[BK03]

Spouse and I Sold our primary residence. Captured less than $500,000 in gains. What is the impact on my taxes? What version of turbo tax do I need? Where in the tool will I enter the info?

[leeloo]

As long as you meet the qualifications, there are no tax consequesnces. You may not even need to include it on your return.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/personal-income-taxes/money-made-home-sa...

[LaceyL · Accepted solution]

What a great question!

You can exclude $250,000 ($500,000 for married filing joint) on the sale of a house if:

• You owned the house 2 or more of the last 5 years
• Lived in the house as a primary residence 2 or more of the last 5 years

If you have both lived in and owned the house for 2 of the past 5 years, you will have no tax effect if you file jointly and have less than $500,000 gain on the sale.  There are some exceptions, like having reported a home office or used it as a rental.

You will use the same TurboTax you would use without the sale of the house, assuming the gain is all excluded.

For more information, here is a great article on the subject Tax Aspects of Home Ownership: Selling a Home 

[BK03]

Thank you

[dhln]

What does "2 in the last 5 years" mean?

Can I sell and receive the 250k/500k once I hit 2 years or do I have to wait till 5 years?

[leeloo]

If you sell your home in 2022, you must have owned and lived in the home for two years during the five prior years. Meaning, if you sold it on 6/15/22, the five years extend back to 6/15/2017, leap years not withstanding.