1099s- sellers final closing statement-social security

[mjckhc]

Hello: 

I sold our house and moved to Oregon November 19 2024 is residency in Oregon according to new drivers license. How do I compute my social security for the 2 months in Oregon as my wife and I do joint tax return. We do take out 10 percent federal taxes and how do we put down the total under Oregon as is it done totally through Federal tax as also lived in CA until then. Will the federal tax carry over to Oregon or what happens with that second state. Which if any areas do I need to do for 2 state part resident being CA and Oregon.

Next-Did sell our home in CA and was wondering on our Sellers closing statement we have debit-like countyl taxes, payoff to lien holder of record(paid off our loan totally) Goverment recording and transfer charges, Commissions listing agent-selling agent, title charges, escrow charges, miscellaneous charges such as 3rd party courier service-hoa dues for october to hoa company, home waranty, natural hazard report fee, notary ofee to notary public, tc fee to transaction cordinator-can and how do we deduct those or which can be deducted and how plus will Turbo Tax run through this. What can be deducted on closing statement.

[AmyC]

1. You will file 2 part year returns and allocate income to each state. Your income received in Oregon, like Social Security can be determined by looking at your records. Alternatively, 2/12 would be close enough. Just divide the total by 6 to get the OR amount. 

2.Federal tax is allowed on the OR return and you can prorate it. You will have to go through all the categories for each return and allocate as needed.

3. The property tax paid at closing is still property tax and entered on Sch A or Sch E if rental.  You won't deduct anything besides property tax and mortgage interest. However, costs that you can add to your basis are:

• Escrow fees
• Legal fees
• Real estate agent commissions
• Advertising costs
• Owner’s title insurance
• Abstract and title search fees 
• Recording fees 
• Survey fees
• Transfer or stamp taxes

Since it was your main home and you are married, the first $500,000 of gain is excluded less any prior depreciation taken. If it was your main home that you lived in 2 out of 5 years, you may not need to report the house sale at all. See Topic No. 701 Sale of Your Home.

[mjckhc]

Hello:

So then since have 2 states--and we don't receive w2 or wages but strictly retired-social security, pensions, ira distributions rmd have to do each year, investment dividends, mortgage interest,property tax--how do we compute the social security---do we put the total deposit with everything taken off--as takes off 10% federal taxes--medicare b-part c senior advantage-prescription. How do I list the remaining portions-is there a spot for each of those or do I just put the total after all deductions per person plus we both have pensions of which they take out 10% federal taxes. Also when the form on Oregon comes up does it have areas for me and my wife as we usually do jointly.Is there a separate area for both of us on the Oregon 1 form, So how do we list the pensions what amounts do we include federal taxes or what? In other words we again moved to Oregon--residency 11/19/24-can we put percentage down or what to make this easier.

Also where do we add to our taxes-- the escrow fees--and other fees on our taxes on the seller closing statement as we do have a 1099-s besides sellers closing cost. 

In our other house we did get the  place painted and also replaced carpeting in some rooms with vinyl wood. Can that be a deduction as was done a few months before selling to upgrade for example and if so where would that go.

Lastly can you mention again the procedure to get the 2nd state of Oregon online as again have the premier with turbo tax.

[MarilynG1]

You will file a Part-Year Resident return for both California and Oregon.  In the state interviews, the total of an income category (Social Security, for example) will be carried over from your Federal return, and you'll make an adjustment to that amount for the state amount.  Use the Gross Amounts you receive. 

The easiest way to do this is to divide your total by 12, then multiply by number of months lived in that state.  You could use 10 for CA, and 2 for OR.

All the sales expenses, plus expenses of getting the house ready for sale, would be added to your Cost Basis when reporting the sale.  However, unless you have over 500K in profit (for MFJ), you won't need to report the sale on your tax return.  Save your 1099-S and closing documents, plus any receipts for improvements, with your tax records, as documentation for your Cost Basis.

Here's more info on How to File a Part-Year Resident Return and  Allocating Income for a Part-Year Resident.

Also, to help you, info on the Home Sale Exclusion and Calculating Your Home's Basis.

@mjckhc 

[mjckhc]

Hello:

We sold our home in 2024 in CA and moved to Oregon November 19 2024. We did paint and change the carpet on rooms to vinyl wood and was wondering can we deduct those and how plus which area?

Also for the 2nd state--as have Premier--how do we on turbo tax get that second state download and when do we pay for it as also was mentioned last year about a 30% discount on buying it.

Thanks and am waiting for your response.

[MonikaK1]

You cannot take a tax deduction for what you paid for paint and flooring for your personal residence. However, if you need to report the sale of your residence because you may not be able to exclude all of your gain from the sale, you can add the cost of significant improvements, such as replacing your flooring with luxury vinyl plank, to your basis in the property which will reduce any taxable gain. 

If you complete the sale of personal residence section in TurboTax, the program will prompt you to answer whether you have improvements to add to basis. To qualify as an increase in the adjusted basis when you sell, the home improvement must:

• Add materially to the value of your home
• Prolong your home's useful life significantly
• Adapt your home to new uses

If you sold your main home during the current tax year, TurboTax can determine if you need to report the sale on your tax return. Generally, profits of up to $250,000 (up to $500,000 on a joint tax return) don't need to be reported to the IRS. TurboTax can figure this out for you.

To enter the sale of a personal residence in TurboTax Online:

• Click on Federal Taxes
• Click on Wages and Income
• Scroll down to Less Common Income
• On Sale of Home (gain or loss), click the start or update button

If your gain on the sale will be less than the applicable limit, and if it was never used for business or as a rental, and you didn't receive a Form 1099-S, you don't need to report the sale on your return at all. Not having to report the sale could save you from needing to upgrade your TurboTax product.

See this article for more information on determining the gain on the sale of your home.

Regarding the discount on a second state:

Some discounts are automatically applied if you file your return within specified dates. If you are asking instead about a discount coupon code or service code you have received and need to redeem, see this help article.

@mjckhc 

[mjckhc]

Hello:

What is the procedure online and entries to get a 2nd state as am a premier with turbo tax as lived in CA in 2024 and then became a resident in Oregon November 19 2024. How do I do the download so can get that state also and when do I pay for the added state.

Thanks and am waiting for your response.

[mjckhc]

We sold our place in CA in 2024 and did receive the 1099-s and received the sellers final closing statement and did Move to Oregon Nov 19 2024 as residents and am wondering on the buyers side we did receive a buyer settlement statement and am wondering on that can we deduct taxes on the final buyer settlement statment such as title-escrow charges, title charges, loan charges if so where would it go  what or do we just do the 1098 Mortgage interest forms we did receive from the selling and buying of both properties. So the main question is can I deduct anything on the buyer settlement statement for us buying the home in Oregon.

Thanks and am waiting for your response.

[MonikaK1]

The only things you can deduct that appear on the escrow settlement document are real estate taxes and mortgage interest, and only if you didn't already include that real estate tax and mortgage interest on your return. The mortgage interest for the period stated on the closing statement may already be included in your Form 1098. See IRS Publication 530 for more information.

Other items on the closing escrow, such as real estate commissions, are treated as selling expenses when you calculate the gain on the sale. See IRS Publication 523 for more information.