I sold a house in 2016

[sam-morgan69]

I read online that if the proceeds from the sale of a house is between $250,000 and $500,000 the seller (me) would not have to pay taxes on the proceeds.  But when I entered the numbers in turbotax at the end it says I get no exclusion or exemption and have a taxable income of the amount I made on the sale of the house.  Am I doing something wrong or reading the wrong tax article?  And I bought a house at almost the same time.  Are there any tax breaks for that (it's my second home) or just the usual interest and taxes like I usually get?

[SweetieJean]

Are you Single? And was it your personal primary residence?

[SweetieJean]

"And I bought a house at almost the same time.  Are there any tax breaks for that (it's my second home) or just the usual interest and taxes like I usually get?"
Just the usual.

[sam-morgan69]

I'm married and it was my personal primary residence.

[sam-morgan69]

Okay.  Thanks

[VolvoGirl]

And it's not the proceeds but the GAIN.  Starting in May 1997…..For a primary home, if you owned and lived in your house for 2 out of the last 5 years when you sell you can exclude the gain up to $250,000 for single or 500,000 for married from tax.  You can not take a loss on your tax return. The rule about rolling over the gain to the next house went out in May 1997.  And it doesn't matter what you did with the proceeds like buy another house.

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc701.html">https://www.irs.gov/taxtopics/tc701.html</a>

[sam-morgan69]

Okay, but I'm a bit confused.  So you're saying as long as it shows I have a gain on the sale and that gain is less than $250,000 to $500,000 I won't have to pay tax on it?

[VolvoGirl]

Ok you are married.  Are you filing a Joint return?  Then the amount you can exclude is 500,000.  What is your gain (not proceeds)
Sales price - your cost + improvements?
When did you buy it and when did you sell it?

[sam-morgan69]

Yes, we are filing jointly.  the sale price was $102,000.  My cost was about $7000 and I didn't add improvement costs because it was maintenance.  Over the years I spent around $17,000 for repairs (roof, windows, etc.).  Using this formula would come to about $78,000.

[sam-morgan69]

Oh, and I bought it in 2001 and sold it in 2016.

[sam-morgan69]

And thank you SweetieJean.  I read that article.

[VolvoGirl]

You don't even need to enter the sale unless you get a 1099S for it.  It won't be taxable.  Where are you seeing it taxable on your return?  That section might not be ready yet.

[SweetieJean]

Was it ever rented out or used for business?

[sam-morgan69]

And that's one of the things I thought about VolvoGirl.  I wasn't sure if I had to put it in there.  Really I was trying to get a jump on the taxes but maybe I should wait and see if a 1099S is sent to us at all before I try doing something like this.