Rental House – Sales Information

[Sweetlb]

In 2008 I bought a house with my brother (50/50 split).

In 2011, we turned it into a rental and then sold in 2020.

In TurboTax, I am entering everything at 50% (my half).

When entering the Cost basis I enter $144k.

All of my sales info is coming from the closing statement.

For the sales price, I am entering $178k.

What do I enter for the “Sales Expenses”?

On my closing statement, I have a total of $154k in expenses, but my mortgage payoff is part of this ($142k).

Do I enter this amount, or subtract the payoff from the closing statement “Total Due From Seller” and only enter $12k?

If I enter the $154k as sales expense, it says I have a loss of $74k. Not sure about this.

If I enter the $12k as sales expense, it says I have a gain of $4k.

This makes more sense, but want to be sure.

[Carl]

Subtract the loan payoff from your sales expenses amount, and enter the difference as your sales expenses. Then you can press on and you'll be fine.

[Carl]

Oh yeah, remember that you're only reporting half of the sales expenses. Your brother gets the other half.