Hi Ernie,
Thank you for your reply. I’m not sure what you mean by selling my home fairly quickly for a loss, but I bought a home in the state that I live in now in Late 2019; went to NJ in March of 2020 to work on repair of my home, but NJ governor declared pandemic and started the travel restrictions and quarantine period for out of state travelers; soon the state that I moved to did the same, so I was forced to comeback. In summer of 2021, I went to my NJ home to finish the repair and sold it; thus it was vacant for about a year and a half.
This is my first time selling a home, and you seem to know a lot about tax for sold homes, so I will follow your opinion and not report the sold home as an investment property and just claim expenses on my settlement for commissions for realtors, legal fees and legal expenses, but not the tax or interest. However when I removed the NJ sold home as an investment, I no longer have place to claim expenses on my settlement in Federal in Turbo Tax, for “The reported sales price did not deduct all fees or selling expenses” was in “Investment Income” in the Federal return. So in which section in Turbo Tax would I claim expenses on my settlement for Federal return? I haven’t started the state return yet, but I presume I may have the same problem there as well. Thanks again for your reply and explaining the tax related to selling a home.
