You’ll need TurboTax Online Premier. TurboTax will show you if
your home sale is taxable.
To enter your principal residence home sale:
- Type sold home in the search box and click search.
- Click on Jump to sold home.
- On the Sold A Home screen, click Continue.
- Enter the Address of the Home You Sold.
- On the Sales Information screen, enter Date Sold, Selling Price, Sales Expenses.
- On the Tell Us About the Purchase of Your Home screen, enter the Date Bought or Acquired and Adjusted Cost Basis.
You won’t pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won’t pay taxes on the first $500,000.
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.
When you sell a second home, the tax situation is different. Here's that info.