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appy744
New Member

Do I include paying off a previous mortgage in the sellers costs when reporting sale of a home?

Sold house for 450k, purchased in 1976 for 36k, I'm 75. Remaining mortgage on the house was 90k.
2 Replies
xmasbaby0
Level 15

Do I include paying off a previous mortgage in the sellers costs when reporting sale of a home?

You might not even need to enter anything about selling the house.  Are you Single-- or filing a married filing jointly return?

 

SALE OF HOUSE

 

If your gain was more than  $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return.  Whether you re-invested the gain in to another house is irrelevant.  If you  have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

  • If you are using online TT, you need Premier or Self-Employed software to report the 1099-S
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Anonymous
Not applicable

Do I include paying off a previous mortgage in the sellers costs when reporting sale of a home?

paying off the mortgage is not a selling expense. never was and likely never will be. 

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