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wdiamond
Level 2

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

I sold my home last year and am trying to figure out how to fill out the Adjusted Cost Basis details in the Adjusted Cost Basis EasyGuide tool, but the info on the Closing Statement from my purchase doesn't align to the fields in the tool.  Some of these I can easily figure out, but others not so clear.  Would appreciate if someone could help align them for me,

 

Tool shows:

Original  Cost 

Abstract and Recording Fees

Legal Fees, Title Search, Documentation Preparation

Land Surveys

Title Insurance

Transfer or Stamp Taxes

Seller's Expenses You Paid

Other Fees

 

My Closing Statement:

800 Items Payable In Connection With Loan

  • 802 Loan Discount (Points)
  • 803 Appraisal/Property Evaluation Fee
  • 804 Credit Report Fee
  • 808 Tax Service Fee
  • 811 Application Fee
  • 838 Commitment Fee

900 Items Required by Lender to Be Paid in Advance

  • 901 Prepaid Interest
  • 903 Hazard Insurance Premium

1000 Reserves Deposited with Lender

  • 1001 Hazard Insurance Reserves
  • 1004 County Property Tax Reserves
  • 1020 Aggregate Accounting Adjustment

1100 Title Charges

  • 1101 Settlement/Closing Fee - Purchase
  • 1103 Title Examination
  • 1108 Title Insurance
  • 1125 Courier Fee

1200 Government Recording & Transfer Charges

  • 1201 Recording Fee

1300 Additional Settlement Charges

  • 1302 Inspection
6 Replies
ThomasM125
Employee Tax Expert

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

Your basis would be the cost of the house, plus every expense listed on the closing statement, accept prepaid items, mortgage interest, points and property taxes.

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gnowckai
New Member

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

I meant where do I enter into my TurboTax 2020 Premier, all the expenses I incurred over 28 years after I sold my principal home is the IRS will know what the actual expenses when I e-File my IRS and State income tax returns

gnowckai
New Member

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

You didn't answer my question

Carl
Level 15

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

Your cost basis in the property is what you paid for the property when you originally purchased it, plus what you paid for any property improvements during the time you owned it, minus the amount of any property insurance claims that were paid out during the time you owned it.

Things that can alter that:

Costs associated with acquisition of the property are added to the cost basis. For example, title transfer fees paid at the courthouse to take the seller's name off the deed and put the buyer's name on the deed.  Typcially, the seller will "NOT" have any costs related to acquisition/disposition of the property, as they are usually all paid by the buyer.

Cost associated with Acquisition/Disposition of the loan are amortized and deducted over the life of the loan by the buyer. For the seller, if they have any loan disposition costs they are just flat out a deductible sales expense. While not unheard of, it is not common for the seller to have any such costs.

One area of contention can be property taxes. If the seller paid property taxes "before" the closing date of the sale, any portion of those property taxes refunded by the buyer are subtracted from the cost basis.

If the seller did not pay property taxes prior to the closing on the sale, then any portion of the property taxes assessed and paid at the closing are subtracted from the cost basis.

Finally, if the seller paid any commisions (usually to a real estate agent) out of their sales price, that commission amount paid by the seller is a deductible sales expense.

 

gnowckai
New Member

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

Second request, please answer my question, where do I enter all my expenses on the sale of my primary principal home in 2020 on my TurboTax 2020 Premier so that the IRS and State would know what my actual expenses are. I'm should the IRS and State would what a list of all the expenses I paid over 28 years versus just enter a total cost to me or value incase I got audited for not enter the expenses to support or verify my expenses to justify the the adjust basis upon buying and selling my house.  Thank you!

gnowckai
New Member

House Sale - Adjusted Cost Basis EasyGuide - what to enter where

Again, where do I enter it on my TurboTax 2020 Premier income tax return to the Federal and State?  Where is my question.  I don't want to get audited if I don't  list all my expenses to support my new basis upon selling my house in 2020.  Better yet, please give me a phone number to talk to a representative.  Thank you

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