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Selling home

I sold my home in Texas in February and purchased a home in Delaware.  Will turbo tax take care of any taxes I will have to pay from the sale of the house?  Can I deduct moving expenses such movers etc from my filing of taxes and down payment etc?

Thank you so much

 

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4 Replies
gburno
Expert Alumni

Selling home

Hello, thank you for contacting TurboTax.

 

TurboTax will handle the accounting of any taxes that you owe because you sold your home. Please study the following to more fully understand the sale of your home.

 

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

 

Tax reform changed rules related to moving expenses. Are moving expenses tax deductible? For most people, the answer is no. Military personnel can still claim the deduction but must meet certain requirements to qualify.

 

If you serve as an active-duty military member, you can claim moving deductions against your taxable income and include them on Form 3903 as an attachment to your Form 1040.

To claim these expenses as a deduction on your tax return as an active member of the Armed Forces, your move must result from a military order and permanent change of station. You can deduct your unreimbursed moving expenses for you, your spouse, and your dependents.

You can't deduct expenses that are reimbursed or paid for directly by the government. You must satisfy two additional criteria to qualify for counting these expenses as tax deductions: meeting the time and distance tests.

 

https://turbotax.intuit.com/tax-tips/jobs-and-career/guide-to-irs-form-3903-moving-expenses/L6CwmGm3...

 

If you are not in the military, you may still want to track your expenses because some states continue to provide a deduction on your state tax return if you meet specific requirements. Delaware follows federal guidelines regarding itemized deductions, so moving expenses will not be deductible.

 

https://news.delaware.gov/2019/02/28/tax-reform-and-your-delaware-itemized-deductions/

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Donna F 77
Employee Tax Expert

Selling home

Congratulations on your recent move!  TurboTax will definitely help you calculate any gain that you would have to pay tax on from the sale of the house.  There is a "Sale of Home" section under "Less Common Income" in the Wages & Income section of TurboTax.  This is where you will go to input the information for the sale of your home.

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on
  • Scroll down to Less Common Income
  • On Sale of Home (gain or loss), click the start or update button

In regards to claiming any moving expenses, only active-duty military are allowed to claim moving expenses at this time.  Here's a link with more information regarding the moving expenses:

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-my-moving-expenses/00/261...

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babsycola
New Member

Selling home

We closed escrow on the above on August 6, 2021.

When are capital gains taxes due and what

forms must we submit?

Also, do we mail a check? what form of payment is best?

Thank you for your help.

Selling home

@babsycola   You will report it on your 2021 return next year.   You can make an estimated payment to help cover any additional tax due.  If you owe too much you may have a penalty for not paying in during the year.

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

 

The 1040ES quarterly estimates are due April 15,  June 15, Sept 15 and Jan 18, 2022.  Your state will also have their own estimate forms.

 

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2021 Estimate

 

 

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