topic Question on Home Sale in After you file

Question on Home Sale

CitizenGain — Wed, 08 Jan 2020 22:57:43 GMT

I entered the information for my home sale (under 250k profit). It does not appear to be on my return. Why?

Re: Question on Home Sale

DoninGA — Wed, 08 Jan 2020 23:00:13 GMT

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

If you were eligible for the capital gain exclusion the sale is not reported on your tax return.

Re: Question on Home Sale

CitizenGain — Thu, 09 Jan 2020 17:26:38 GMT

Thank you for your response.

Is there a way to get the details for why the gains were less than 250k?

I entered the requested information and the sale seems to have not been reported. If State asked me later for proof that it was under 250k, what should I give them?

Re: Question on Home Sale

DoninGA — Thu, 09 Jan 2020 17:39:17 GMT

@CitizenGain wrote:

Thank you for your response.

Is there a way to get the details for why the gains were less than 250k?

I entered the requested information and the sale seems to have not been reported. If State asked me later for proof that it was under 250k, what should I give them?

Gain or Loss on the sale of a personal residence is calculated as Sales Price minus Sales Expenses minus Adjusted Basis

Sales Expenses usually are Realtor commission and payments made by the seller on behalf of the buyer.

There is no tax deduction for transfer taxes, stamp taxes, or other taxes, fees, and charges you paid when
you sold your home. However, if you paid these amounts as the seller, you can treat these taxes and fees as selling expenses

Those will be shown on your HUD statement received at closing.

Adjusted Basis is your original Purchase Price plus the cost of improvements made to the residence prior to the sale. You should have a Security Deed with the purchase price and you should have some type of proof, ie receipts for the improvements