How does buying/selling a home affect my taxes?

[jspeen26]

Hello,

I recently purchased a new home and sold my previous home. Both in Massachusetts. I am curious the impact this will have to my taxes. 

[John-H2021]

Hello,

You will need to report the sale of the home on your tax return using the 1099-s that should have been sent to you.

If you owned and lived in the home for a total of two of the five years before the sale, then up to $250,000 of profit is tax free ($500,000 if you married filing joint).

If your profits exceed the above limit, then the excess is reported as capital gains on schedule D.

If you have a loss, it is not deductible on the return.

Here is a link with more details

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...