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February 4, 2025
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I am working on my primary home sale; 1099S to see if we owe any capital gains. I can't seem to find where we are able to deduct the mortgage and home equity loan

  • February 4, 2025
  • 2 replies
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The selling price is not what we received as we had to pay off our mortgage and home equity loan....so not sure how to show that difference of what we actually took in from the sale of our home
    Best answer by DoninGA

    The mortgage loan and home equity loans are not included in the home sale capital gain or loss calculation.

     

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

    2 replies

    Employee
    February 4, 2025

    SALE OF HOUSE

     

    If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

    If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

     

    • If you are using online TT, you need Premium software to report the 1099-S

     

    TO ENTER THE SALE OF YOUR PRIMARY HOME

    1. Start with Federal 
    2. Click on Wages and Income 
    3. Select Choose what I work on
    4. Scroll down to Less Common Income
    5. On Sale of Home (gain or loss), 
    6. Click the start or update button

     

    NOTE:   If you have ever used the home as rental property or claimed a home office, you have more information to enter

     

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/homeowner-tax-credits-deductions/selling-home-affect-taxes/L3I66YR0u_US_en_US?uid=m6cuq5qg

     

     

    Selling expenses:

     

    Commissions

    Appraisal fees

    Legal fees

    Advertising fees

    Home inspections reports

    Title insurance

    Transfer tax or fees

    Geological surveys

    Loan origination points paid on behalf of buyer

     

    NOT selling expenses

    Mortgage or HELOC payoffs

    Rent back costs

    Payoffs to creditors

    Property tax

    HOA fees

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    DoninGA
    DoninGAAnswer
    Employee
    February 4, 2025

    The mortgage loan and home equity loans are not included in the home sale capital gain or loss calculation.

     

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