I now understand the cost basis we paid for the house includes and record fee or transfer fee in it.
I apologize, even with your answer I am still very confused on the proceeds we report from when we sold the second home and then the land.
Example: Your 1099-S reports a gross profit from sale of second house of 66,000
But out of that gross 66,000
You paid 5276.25 in closing costs
You paid 635.12 in land taxes up front
After that, you really only profited 60,088.63
So please let me ask again, do I enter in that 66,000 gross profit from 1099-S but then I will be prompted to deduct the land taxes and closing costs to reduce those proceeds to the 60,088.63 I really earned?
Or just put the 60,088.63 as my profit from the start. I'm sorry I didn't understand the first time you tried to explain this, I am better with figures and examples given.
