Tax Year Prior to 2020: Sold primary house

Forum|Forum|7 years ago
January 26, 2019
1 reply
0 views

I sold my primary home for about 24k more then I paid about a year after living there.. I needed a bigger house due to a baby on the way. After fees and paying off old mortgage, as well as a down payment on the new house, that money is spent, but I forgot about taxes. How badly will i be taxed on that profit?

KarenL

Employee

You won't be taxed badly, if at all. 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.

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. You cannot deduct normal maintenance items, but you can deduct expenses to prepare the home for sale.

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.)