I have two questions. I inherited a house 6 years ago in 2013. the value was sold house in 2020 used the house as a second home.
the value of the house went up around 100k. do I put the selling price of the house total proceeds(sum of all sales)
then put all the difference like realtor fees,updates to the house, value difference in Total cost basis(sum of all sales) or do I have to itemize and where do input the data.
second question is the house had a reverse mortgage and I paid if off when inheriting the house. can I deduct the amount I paid off.
You'll need to sign in or create an account to connect with an expert.
Can't deduct the mortgage payoff from the sales price but you can deduct selling expenses. But updates aren't deductible if they're fixup expenses.
Lets start with the reverse mortgage. Since you inherited the house with a reverse mortgage, you would increase your basis in the house by the amount of the reverse mortgage on the date you inherited it. It has the same effect as reducing the sales proceeds. Real estate agent fees, and other costs to see the house will be a reduction in the sales proceeds. While you were using the house as a second home, any repairs or maintenance can be added to the basis. If you made additions or renovation, those will be added to your basis. For example, if you had the kitchen painted, it's a non deductible expense. If you had the kitchen renovated (new cabinets, flooring, appliances, etc.) that is a renovation that is added to your basis. If you painted to get the house ready to sell, that would be a selling expense.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
KarenL
Employee Tax Expert
terriwood29-iclo
New Member
krhymer
New Member
jillannette32-gm
New Member
abih168608
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.