Sold my primary home

[Raastagurl1]

I sold my primary home in 2024 for $100K. I'm still in the process of buying a new home. Do I have to file the sell of my primary house and pay taxes due to me not purchasing another home yet? How much time do I have to file until I purchase another primary home.

[pk]

@Raastagurl1  the current rule when you sell your primary home  is  that there is no requirement to buy another / replacement home.   You get taxed on the gain  of the disposition of the home.

However, if you meet the following rules :  1.  If at least one of you ( for MFJ ) owned the home for  at least two years;  2. both of you have used the home as your main home for a total of 730 days  with a look back of five years from the date of sale closing  and 3. neither have availed of this exclusion during the last two years --- you can each exclude  up to $250,000 of gain from  taxation.

Does this help ?

[DoninGA]

There no requirement for you to purchase another home after you sell your home.  If you have a gain on the sale that is not being excluded then the gain is entered on your tax return for the year of the sale.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

Gain or Loss = Sales Price (minus) Sales Expenses (minus) the Adjusted Basis of the Home (Purchase price plus the cost of improvements prior to the sale)

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premium edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

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 (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button