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New Member
posted Jun 7, 2019 2:57:41 PM

How do I calculate the selling expenses of my home

Is the payoff of my mortgage and owed property taxes on a home sale considered a selling expense of the home?

0 7 20487
1 Best answer
New Member
Jun 7, 2019 2:57:54 PM

Follow the step by step guide and answer the questions as they relate to your situation.

Sales expenses include:

 - commissions
 - appraisal fees
 - broker's fees
 - legal fees
 - advertising fees
 - home inspection reports
 - title insurance
 - transfer taxes or fees
 - geological surveys
 - loan charges (points) or other fees paid on the buyer's behalf

Sales expenses do not include:
 - mortgage payoffs
 - home equity loan payoffs
 - rent-back costs
 - payoff to creditors
 - property taxes
 - home owner association fees

See below for more information.
https://ttlc.intuit.com/replies/3302480




7 Replies
New Member
Jun 7, 2019 2:57:43 PM

Can anybody point to the code section that authorizes these expenses?

Level 15
Jun 7, 2019 2:57:45 PM
Level 15
Jun 7, 2019 2:57:48 PM
New Member
Jun 7, 2019 2:57:49 PM

These resources are helpful, but I am searching for primary sources of authority. The closest I can find is a Treasury Regulation related to IRC Sec. 1034, which was repealed.

Level 3
Jun 7, 2019 2:57:52 PM

When entering the Gross or Net on the sale of a lot, are the real estate taxes included in the cost of the sale? Or should they not be included in my cost for the sale? Also, our 1099-S only shows Gross Proceeds. However, turbo tax asks for Net, not gross. Do I use the 1099-S Gross figure, or can I use the net figure on the closing statement instead of the 1099-S Gross figure. And would the real estate taxes have to be factored out?  thanks

New Member
Jun 7, 2019 2:57:54 PM

Follow the step by step guide and answer the questions as they relate to your situation.

Sales expenses include:

 - commissions
 - appraisal fees
 - broker's fees
 - legal fees
 - advertising fees
 - home inspection reports
 - title insurance
 - transfer taxes or fees
 - geological surveys
 - loan charges (points) or other fees paid on the buyer's behalf

Sales expenses do not include:
 - mortgage payoffs
 - home equity loan payoffs
 - rent-back costs
 - payoff to creditors
 - property taxes
 - home owner association fees

See below for more information.
https://ttlc.intuit.com/replies/3302480




New Member
Jun 7, 2019 2:57:55 PM

Would origination fee's be classed as Sellers Expenses too?