Tax Year Prior to 2020: Sold property and recieved 1099-S . Can you write off any closing costs from the sell?

cassbrown75 — Fri, 28 Apr 2023 15:21:55 GMT

Yes, you can deduct the items listed below in Sales Expen...

KarenL2 — Thu, 06 Jun 2019 05:18:21 GMT

Yes, you can deduct the items listed below in Sales Expenses. Also, you cannot deduct normal maintenance items, but you can deduct expenses to prepare the home for sale.

Sales expenses are listed in the sellers column of your settlement statement and include:

commissions
appraisal fees
broker's fees
legal fees
advertising fees
home inspection reports
title insurance
transfer taxes or fees
geological surveys
loan charges (points) or other fees paid on the buyer's behalf
any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)

NOTE:

Sales expenses do not include:

mortgage payoffs
home equity loan payoffs
rent-back costs
payoff to creditors
property taxes
home owner association fees

Where to enter the sale of your home (if required) in TurboTax: While inside the software and working on your return, type sale of home in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to sale of home. Select that to get to the general area.

Note to others reading this: If you received a Form 1099-S, you need to report it. If all of the following apply, you don't need to report it.

You lived in the home as your main home for at 2 of the 5 years preceding the sale.
Your "net" profit from the sale is less than $250,000 ($500,000 if Married Filing Jointly).
You didn't take depreciation deduction on the home or use it for business during the time you owned it.
You didn't rent it out at any time that you owned it.
You didn’t receive a Form 1099-S.

topic Tax Year Prior to 2020: Sold property and recieved 1099-S . Can you write off any closing costs from the sell? in Deductions & credits

Tax Year Prior to 2020: Sold property and recieved 1099-S . Can you write off any closing costs from the sell?

Yes, you can deduct the items listed below in Sales Expen...