Rec'd substitute 1099S showing gross proceeds only.If I use cash to seller won't it make me pay tax on my down payment which was already taxed?

Forum|Forum|7 years ago
June 6, 2019
1 reply
12 views

I know the amount I paid for the house (second home) minus the repairs and improvements. Can I just use the actual amount gained for my net proceeds?

TurboTax Premier Windows

Best answer by

Your down payment has nothing to do with basis. The only things considered are purchase price, adjustments to basis and sales price in any transaction. You would not look at cash in hand or consider mortgages.

For basis adjustments see the link below.

https://www.irs.gov/publications/p551/ar02.html

Anonymous

Answer

For basis adjustments see the link below.

https://www.irs.gov/publications/p551/ar02.html

Rec'd substitute 1099S showing gross proceeds only.If I use cash to seller won't it make me pay tax on my down payment which was already taxed?

1 reply

Unlock tailored help options in your account

Get answers to all your tax questions

Unlock tailored help options in your account

Get answers to all your tax questions

Sign up

Login with SSO

Let's get you signed in

Login with SSO