turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ddcmcj12
New Member

Tax Year Prior to 2020: Sold a house in Sept and are building how do we enter our profit into the cost of new house

How do we apply home sales profit to our new home

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Tax Year Prior to 2020: Sold a house in Sept and are building how do we enter our profit into the cost of new house

If it's a personal residence, you no longer report a home sale this way.  The only time to do this is if it's part of a qualified 1031 Exchange.  You would know if this is what you did.

That said, if you are required to report your home sale, there will be a space in the software to enter the date sold, Selling Price, and Sales Expenses.  You can deduct the items listed below in Sales Expenses (to help reduce any gain). You cannot deduct normal maintenance items, but you can deduct expenses to prepare the home for sale.

If all of the following apply, you don't need to report it.

  • You lived in the home as your main home for at 2 of the 5 years preceding the sale.
  • Your "net" profit from the sale is less than $250,000 ($500,000 if Married Filing Jointly).
  • You didn't take depreciation deduction on the home or use it for business during the time you owned it.
  • You didn't rent it out at any time that you owned it.
  • You didn’t receive a Form 1099-S.

Where to enter the sale of your home  (if required) in TurboTax: While inside the software and working on your return, type sale of home in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to sale of home.  Select that to get to the general area. 

Sales expenses are listed in the sellers column of your settlement statement and include:

  • commissions
  • appraisal fees
  • broker's fees
  • legal fees
  • advertising fees
  • home inspection reports
  • title insurance
  • transfer taxes or fees
  • geological surveys
  • loan charges (points) or other fees paid on the buyer's behalf
  • any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

Sales expenses do not include:

  • mortgage payoffs
  • home equity loan payoffs
  • rent-back costs
  • payoff to creditors
  • property taxes
  • home owner association fees

Is the Sale of My Main Home Taxable?

https://ttlc.intuit.com/replies/3300213


message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies