Adjusted basis of home sold

[rocketcoug]

I sold my home on 11/30/2016.  Did not receive a 1098-S.  Need the "Adjust basis of home sold" filled in on my return.  What do I put there?

[PaulaM]

In general, adjusted basis is your original costs plus improvements (less depreciation on business property). If your sale was for your primary home, you may not need to enter it at all.

You may qualify to exclude from income all or part of any gain from the sale of your primary residence if you meet ownership and use tests. This means for the 5-year period ending with the sale of the home, you lived in it as your main home and you owned it for 2 years.

If you meet both tests, you may exclude up to $250,000 ($500,000 on joint returns) of gain from your income, and you would not report it on your return.

Do not report the sale of your main home on your tax return unless:

• You have a gain and do not qualify to exclude all of it,
• You have a gain and choose not to exclude it, or
• You have a loss and received a Form 1099-S.

Sale of main home 

IRS pub 523

[juarez842]

My Mother recently sold her home she had for 40 years and received a 1099-S. It had been refinanced several times and over the past 20 years had a reverse mortgage on it. How would I calculate the adjusted basis?

[RobertG]

Refinancing and the reverse mortgage do not affect your adjusted basis.

Adjusted basis is your original costs plus improvements (less depreciation if it was ever used as business property). 

See PaulaM's answer above.

@juarez842

[juarez842]

Thanks. So what she paid for it 40 years ago is her adjusted basis?

[AmyC]

What was paid originally plus any capital improvements. Added a fence, a room, any major improvements also add to the basis.  @juarez842