Question

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

Forum|Forum|7 years ago
June 3, 2019
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How do we apply home sales profit to our new home

TurboTax Deluxe Online

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.)