@Brenk538 wrote:
Sold my home after 30 years. Total sales after remaining 1rst and 2nd mortgage was under the $500 K threshold. Do I need to complete section part with adjusted cost basis or can I just move on? I did NOT receive a 1099 S. MB
Mortgages are not included in the calculation for the gain or loss on the sale of the home.
Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis of the home (Original Purchase Price plus the cost of improvements prior to the sale)
If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).
If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.
It would be in your best interest to report the sale of the home on your tax return just in case the IRS receives a Form 1099-S for the sale even if you did not.
