Definitely report the sale even if you did not make any money.
IRS gets a copy of Form 1099-S. If you don’t report the sale, IRS will probably send a notice with the assumption you owe tax on $115,000. It’s better to include the sale on your return now to avoid having to deal with IRS later.
A loss on the sale of a personal residence is not deductible.
Here’s how to report the sale of a personal residence in TurboTax:
- Type "home sale" in Search in the top right
- Tap "Jump to home sale"
- Continue on Sold A Home
Be sure to check the box that asks if you received Form 1099-S.
If this is not your main home, you may be able to deduct a loss if it’s an investment property.
If you live somewhere other than Missouri, you may have to file a nonresident MO return to report the sale.
