Can I deduct realtor fees from the sell of my 2nd home?

[leothedog1965]

I rcvd a Form 1099-S for the selling price of $309,000.  If I can deduct the realtor fees paid to sell my 2nd home,  do I just subtract the realtor fees from the 309K and enter the adjusted amount on the  Net Proceeds line in Turbo Tax?   Just concerned because it would not match the Form - 1099-S showing the amount of $309,000

[Rachel_W]

You should include the full selling price of $309,000 on line 1d that is reported on your Form 1099-S so that it matches IRS records.

The realtor fees should be included in the "cost or other basis", line 1e.  These fees should be added to your other cost basis for the 2nd home including original purchase price, improvements, etc.

Please comment below if you need further clarification.

[kkjohnston]

I cant find where to enter realtor fee from cost basis on sale of 2nd home  it says line 1E .  where is that?

[ColeenD3]

You can also look on your HUD-1, Line 703. Commission paid at settlement.

[DoninGA]

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@kkjohnston wrote:

I cant find where to enter realtor fee from cost basis on sale of 2nd home  it says line 1E .  where is that?

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The Form 1099-S that you received has the proceeds you received from the sale after all fees, including the sales commission, from the sale were paid.  

When entering the sale of the second home the amount shown on the 1099-S is what you should enter where asked for Net Proceeds.

To enter the sale of the second home -

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose Second home and continue with the section until it completes.