topic I bought some land in 2018 in Deductions & credits

Can I include closing costs as part of origination fees?

erica-armijo9 — Mon, 03 Jun 2019 17:28:52 GMT

Are you buying or selling a home?

Coleen3 — Mon, 03 Jun 2019 17:28:53 GMT

Are you buying or selling a home?

I bought some land in 2018

erica-armijo9 — Mon, 03 Jun 2019 17:28:55 GMT

I bought some land in 2018

Yes. Your settlement costs are added to the basis of your...

Coleen3 — Mon, 03 Jun 2019 17:28:56 GMT

Yes. Your settlement costs are added to the basis of your land. Any closing costs belonging to the seller are added to their own basis of the land.

Settlement costs. Your basis includes the settlement fees and closing costs for buying property. You cannot include in your basis the fees and costs for getting a loan on property. A fee for buying property is a cost that must be paid even if you bought the property for cash. The following items are some of the settlement fees you can include in the basis of your property. Abstract fees (abstract of title fees). Charges for installing utility services. Legal fees (including title search and preparation of the sales contract and deed). Recording fees. Surveys. Transfer taxes. Owner's title insurance. Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.

Re: Are you buying or selling a home?

how can i restart my state — Wed, 15 Jul 2020 22:15:38 GMT

selling

Re: I bought some land in 2018

DawnC — Wed, 15 Jul 2020 22:23:02 GMT

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you file jointly, you won't pay taxes on the first $500,000.

That income is free and clear as long as:

You owned the home.
It was your main home for two years or more within the five years leading up to the sale.
You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

When you sell a second home, the tax situation is different.

TurboTax will show you if your home sale is taxable. To enter the sale of your main home:

Open or continue your return in TurboTax.
Search for home sale.
Select the Jump to link in the search results.
Answer Yes to Did you sell or have your home foreclosed in 2019? on the Sale of Your Main Home screen.
Follow the instructions to enter your info.