Question

I am not sure how to enter the sale of my home

Forum|Forum|3 years ago
February 12, 2023
1 reply
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I have the settlement statement, but I'm not sure what I write in the selling price and sales expenses for my taxes. Do I use totals or only add up certain columns?

TurboTax Deluxe Online

leeloo

If this was your persobnal home, enter it under Sale of Home. Your purchase price is what you originally paid for it, pluys improvements, if any and adding in certain sales expenses. Your sales price is the contract sales price, Box 101.

Items added to basis.

You can include in your basis the settlement fees and closing costs you paid for buying your home. A fee is for buying the home if you would have had to pay it even if you paid cash for the home. The following are some of the settlement fees and closing costs that you can include in the original basis of your home.

Abstract fees (abstract of title fees).

Charges for installing utility services.

Legal fees (including fees for the title search and preparation of the sales contract and deed).

Recording fees.

Surveys.

Transfer or stamp taxes.

Owner's title insurance.

Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

T

tmunoz

If this was your primary home, you will report that in the Wages and Income section.

If this was your second home or your rental property, it will be entered in another area of the return.

Scroll down to Less Common Income and click on Show More

Click Start for Sale of Home

You will add your purchase price to settlement fees at time of purchase and costs of improvements for your basis. Maintenance costs should not be included. For instance, if you had trees trimmed to keep them from falling on the house, that would not be included but if you had landscaping done, that could be included.
Selling price is the contract price and the sales expenses might be realtor commissions and fees paid at closing.

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly).

That income is exempted as long as:

You owned the home
It was your main home for two years or more within the five years leading up to the sale
You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes.