The net proceeds would be the gross proceeds less any deductible expenses associated with the sale. Sales proceeds are usually reported on a Form 1099-S or on an escrow or settlement statement.
Sales expenses are generally listed in the seller's column of your settlement statement and include:
- Commissions
- Appraisal fees
- Broker's fees
- Legal fees
- Advertising fees
- Home inspection reports
- Title insurance
- Transfer taxes or fees
- Geological surveys
- Loan charges (points) or other fees paid on the buyer's behalf
Note that sales expenses do not include:
- Mortgage payoffs
- Home equity loan payoffs
- Rent-back costs
- Payoff to creditors
- Property taxes
- Homeowner association (HOA) fees
