I sold my house and made 28000 dollars profit which I then used as a down payment for a new house. Should I get a 1099-S? is the 28000 taxable? Can I write down remodels?

[Marketstar · Accepted solution]

You will be exempt from paying a capital gain on the sale of your home if:

You owned and lived in your home 2 out of the last 5 years prior to the sale, and,

Your gain is less than $250,000 ($500,000 if filing Married Filing Joint).

You will need to enter the sale on your return in any case if you receive a 1099-S

Consider consulting with your realtor and/or title company to determine if you will receive a 1099-S

Remodeling/home improvements can be added to the cost basis of your property and reduce your capital gain in the event of sale.