How do I report the sale of my home (principal residence)?

by TurboTax• Updated 10 months ago

As of 2016, details about the sale of your principal residence must be reported on your tax return. This information should be entered in the Income section of TurboTax.

Instructions for TurboTax Online

If you’re preparing a single return:

Select Find and enter principal.
Select Principal Residences from the search results, then select Go.
On the Sale of your Principal Residence step, select the Sale of principal residence checkbox, then Continue.
Enter information related to the sale in the appropriate fields, then select Continue.
On the Disposition to a spouse or partner step, answer the question(s), then select Continue.
On the Designation of a property as a Principal Residence step, fill out the fields, then select Continue.
On the Sale of Principal Residence Summary step, select Continue.

If you and your spouse/partner are preparing your returns together:

Select Find and enter principal.
Select Principal Residences from the search results, then select Go.
On the Sale of your Principal Residence step, select the Sale of principal residence checkbox for whoever owned or co-owned the property, then Continue.
Answer the question on the Who disposed of the property? step, then select Continue.
On the Sale of your Principal Residence step, enter information related to the sale in the appropriate fields, then select Continue.
If both you and your partner co-owned the property, skip this step and go to Step 8. If only one of you owned the property, on the Disposition to a spouse or partner step that appears, answer the question(s), then select Continue.
On the Designation of a property as a Principal Residence step, fill out the fields, then select Continue.
If you and your partner co-owned the property for the same amount of time or if only one of you co-owned the property, skip this step and go to Step 10. If you and your spouse/partner co-owned the property for different lengths of time, after the Designation of a property as a Principal Residence step reappears with questions for your partner, fill out the fields, then select Continue.
On the Sale of Principal Residence Summary step, select Continue.

Instructions for TurboTax Download (EasyStep method)

If you’re preparing a single return:

Select Find and enter principal.
Select Principal Residence (not Principal Residences) from the search results, then select Go.
On the Sale of your Principal Residence step, select the Sale of principal residence checkbox, then Continue.
On the Sale of your Principal Residence step, enter information related to the sale in the appropriate fields, then select Continue.
On the Disposition to a spouse or partner step, answer the question(s), then select Continue.
Answer the question on the Designation of a property as a Principal Residence - Federal step, then select Continue.
On the Sale of your Principal Residence Summary step, select Continue.

If you and your spouse/partner are preparing your returns together:

Select Find and enter principal.
Select Principal Residence (not Principal Residences) from the search results, then select Go.
On the Sale of your Principal Residence step, select the Sale of principal residence checkbox for both your names, then Continue.
Answer the question on the Who disposed of the property? step, then select Continue.
On the Sale of your Principal Residence step, enter information related to the sale in the appropriate fields, then select Continue.
Answer the question on the Designation of a property as a Principal Residence - Federal step, then select Continue.
On the Sale of your Principal Residence step, enter information related to the sale in the appropriate fields, then select Continue.
On the Designation of a property as a Principal Residence - Federal step, answer the question about your spouse/partner, then select Continue.
On the Sale of your Principal Residence Summary step, select Continue.

If you and your spouse/partner are preparing your returns together and only one of you owned the property:

Select Find and enter principal.
Select Principal Residence (not Principal Residences) from the search results, then select Go.
On the Sale of your Principal Residence step, select the Sale of principal residence checkbox for whoever owned the property, then Continue.
On the Sale of your Principal Residence step, enter information related to the sale in the appropriate fields, then select Continue.
On the Disposition to a spouse or partner step, answer the question(s), then select Continue.
On the Designation of a property as a Principal Residence - Federal step, answer the question, then select Continue.
On the Sale of your Principal Residence Summary step, select Continue.

Instructions for TurboTax Download (Forms method)

From the menu, select View, then Find Form.
In the Keyword to search for field, enter principal residence.
Select PRWS – Principal Residence designation worksheet from the results in the Forms box, then select OK.
On the Principal Residence Designation Worksheet, enter information about the sale in the appropriate fields.