MelanieC1
Employee Tax Expert

Get your taxes done using TurboTax

Hi @Tom Bonifield , thank you for joining us this morning and congrats on the sale of your home!

 

To properly report the sale of your primary residence gather the following documents:

  • Closing statement when you purchased the home 23 years ago;
  • Closing statement when you sold the home in 2023;
  • 2023 Form 1099S (you may receive this from the Title Company -- but the same information should be on the 2023 closing statement);
  • Receipts from major purchases/upgrades to the home such as a home addition, new roof, upgraded kitchen, etc.;
  • Documentation of any casualty losses or tax credits during the time that you owned the home.

Using your documentation you can then determine the adjusted basis of the home starting with the home purchase price, plus the costs to purchase the home and any major home improvements.  You will also need to reduce this amount by any losses or tax credits.

 

The sales price of the home is reduced by the selling costs, such as realtor fees, title fees, etc. to sell the home typically listed on closing agreement.  Many of these expenses can be substantial.

 

The adjusted sales price less the adjusted basis of the home will give you your overall gain.  If you are filing Married filing Jointly and lived in the home for two of the five years before the sale you can exclude up to $500,00 of the gain.  

 

TurboTax is great at guiding you through these questions and helping you to capture all of the related costs and expenses.  Here is a link for additional information on items to consider

 

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t... 

 

Thank you!

Melanie, CPA