Selling my home

[sharonmtucker11]

I’m planning on selling my home next spring so I am wondering, will there be a specific area when I’m doing my taxes online that it will ask how much I sold it for? Or does it ask what the difference was from what I owed to what I sold it for? How does that affect my taxes? A friend told me something about a one time something that you don’t have to pay taxes on it. 

[John-H2021]

Hello,

Yes there will be a place to enter the sale of home, it will be under income near the bottom and ask if you have a 1099-s for sale of home.

You will enter the sales price (price minus fees) and the sale date

Then enter the basis (cost of the home, closing fees and improvements) and the purchase date.

As long as you owned and lived in the home for 2 of the last 5 years you are eligible for the exclusion of $250,000 (single or $500,000 (married filing jointly. Any amount over that you will pay capital gains tax on.

Here is a link with more detailed information 

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