When I’ve sold is the gain the difference between my purchase price , sold price above + $500,000 ?
You'll need to sign in or create an account to connect with an expert.
Your gain will be determined by the amount you sold the home for, minus any fees and expenses related to the sale, minus your basis in the home (what you originally paid for the home and any improvements).
When you make a home improvement, such as installing central air conditioning or replacing the roof, you can't deduct the cost in the year you spend the money. But, if you keep track of those expenses, they may help you reduce your taxes in the year you sell your house.
It depends on how long you owned and lived in the home before the sale and how much profit you made.
The law lets you "exclude" this profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)
There are three tests you must meet in order to treat the gain from the sale of your main home as tax-free:
If you're married and want to use the $500,000 exclusion:
Gain or Loss on the sale of a primary residence equals the Sales Price minus sales costs minus the Adjusted Basis of the home (Purchase price plus the cost of any improvements to the home prior to the sale).
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
fastlapp
Level 1
KerryOn
Level 2
sun1232
New Member
Jbroo
New Member
Redheather
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.