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Yes, you will include eligible costs that you paid on behalf of the buyer as part of your selling expenses.
This information should be listed on your Closing Statement (HUD-1). You may want to contact your real estate agent for more details related to this sale.
You are allowed to deduct from the sales price almost any type of selling expenses, provided that they don’t physically affect the property. Such expenses may include:
Just remember that you do not need to enter the sale of your primary residence if:
You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See Sale of Your Home for more information on the exclusion.
If you still need to enter your sale of your primary residence (which may require an upgrade in TurboTax), please follow these steps:
Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:
Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S
I had to pay the buyers closing cost when I sold my home because they could not borrow enough to cover their cost. Can I claim this on my income tax and if so where do I enter it.
If you have to claim capital gain on the house, you can add that to the cost of the sale.
If you are able to take the Home Sale Gain Exclusion, you cannot.
I’m selling a home that I’ve owned for less than a year, and the buyer has requested that we increase the purchase price by $10,000 so that I can contribute $10,000 towards their closing costs. Will this affect my tax obligations?
That situation is a wash for you ... the increased income will be offset by the increased cost.
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