topic House Sale - Adjusted Cost Basis EasyGuide - what to enter where in Deductions & credits

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

wdiamond — Wed, 08 Apr 2020 03:18:45 GMT

I sold my home last year and am trying to figure out how to fill out the Adjusted Cost Basis details in the Adjusted Cost Basis EasyGuide tool, but the info on the Closing Statement from my purchase doesn't align to the fields in the tool. Some of these I can easily figure out, but others not so clear. Would appreciate if someone could help align them for me,

Tool shows:

Original Cost

Abstract and Recording Fees

Legal Fees, Title Search, Documentation Preparation

Land Surveys

Title Insurance

Transfer or Stamp Taxes

Seller's Expenses You Paid

Other Fees

My Closing Statement:

800 Items Payable In Connection With Loan

802 Loan Discount (Points)
803 Appraisal/Property Evaluation Fee
804 Credit Report Fee
808 Tax Service Fee
811 Application Fee
838 Commitment Fee

900 Items Required by Lender to Be Paid in Advance

901 Prepaid Interest
903 Hazard Insurance Premium

1000 Reserves Deposited with Lender

1001 Hazard Insurance Reserves
1004 County Property Tax Reserves
1020 Aggregate Accounting Adjustment

1100 Title Charges

1101 Settlement/Closing Fee - Purchase
1103 Title Examination
1108 Title Insurance
1125 Courier Fee

1200 Government Recording & Transfer Charges

1201 Recording Fee

1300 Additional Settlement Charges

1302 Inspection

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

ThomasM125 — Wed, 08 Apr 2020 03:45:00 GMT

Your basis would be the cost of the house, plus every expense listed on the closing statement, accept prepaid items, mortgage interest, points and property taxes.

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

gnowckai — Thu, 04 Mar 2021 19:28:40 GMT

I meant where do I enter into my TurboTax 2020 Premier, all the expenses I incurred over 28 years after I sold my principal home is the IRS will know what the actual expenses when I e-File my IRS and State income tax returns

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

gnowckai — Thu, 04 Mar 2021 19:30:22 GMT

You didn't answer my question

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

Carl — Thu, 04 Mar 2021 19:37:08 GMT

Your cost basis in the property is what you paid for the property when you originally purchased it, plus what you paid for any property improvements during the time you owned it, minus the amount of any property insurance claims that were paid out during the time you owned it.

Things that can alter that:

Costs associated with acquisition of the property are added to the cost basis. For example, title transfer fees paid at the courthouse to take the seller's name off the deed and put the buyer's name on the deed. Typcially, the seller will "NOT" have any costs related to acquisition/disposition of the property, as they are usually all paid by the buyer.

Cost associated with Acquisition/Disposition of the loan are amortized and deducted over the life of the loan by the buyer. For the seller, if they have any loan disposition costs they are just flat out a deductible sales expense. While not unheard of, it is not common for the seller to have any such costs.

One area of contention can be property taxes. If the seller paid property taxes "before" the closing date of the sale, any portion of those property taxes refunded by the buyer are subtracted from the cost basis.

If the seller did not pay property taxes prior to the closing on the sale, then any portion of the property taxes assessed and paid at the closing are subtracted from the cost basis.

Finally, if the seller paid any commisions (usually to a real estate agent) out of their sales price, that commission amount paid by the seller is a deductible sales expense.

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

gnowckai — Thu, 04 Mar 2021 19:37:36 GMT

Second request, please answer my question, where do I enter all my expenses on the sale of my primary principal home in 2020 on my TurboTax 2020 Premier so that the IRS and State would know what my actual expenses are. I'm should the IRS and State would what a list of all the expenses I paid over 28 years versus just enter a total cost to me or value incase I got audited for not enter the expenses to support or verify my expenses to justify the the adjust basis upon buying and selling my house. Thank you!

Re: House Sale - Adjusted Cost Basis EasyGuide - what to enter where

gnowckai — Thu, 04 Mar 2021 19:42:20 GMT

Again, where do I enter it on my TurboTax 2020 Premier income tax return to the Federal and State? Where is my question. I don't want to get audited if I don't list all my expenses to support my new basis upon selling my house in 2020. Better yet, please give me a phone number to talk to a representative. Thank you