Recently sold a property

Forum|Forum|3 years ago
November 16, 2022
1 reply
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Do I have to file for a property that was recently sold? The income from the sale was used to finance a move from Texas to Hawaii and there is still money left in savings

drc845443

Level 6

Hello there!

I have assumed that the property that you sold in Texas was your principal residence.

If the property you sold in Texas was not your principal residence, then you need to report the gain (profit) you got on the sale of the property.

Assuming the property was your main home, you need to determine whether you made a gain or loss on the sale of the property.

If you made a loss, then you do not need to report the transaction.

If you made a gain, you may be able to exclude up to $250,000 of your gain if you're filing as single, head of household, or married filing separately and $500,000 if you're married filing jointly. to qualify to exclude the gain from your taxable income, you need to meet the following conditions:

You owned the home for a total of at least two years.
You used the home as your primary residence for a total of at least two years in last five-years before the sale.
You haven't excluded the gain from another home sale in the two-year period before the sale.

If you qualify to exclude the gain, then you do not need to report the transaction.

If you made again but do not qualify to exclude the profit, then you need to report the sale of the home.

The use of the money to finance relocation from Texas to Hawaii does not have any tax implications.

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