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nilotpal
New Member

How do i report income from sale of a car? how do i report purchase of a new home?

 
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Accepted Solutions
PaulaM
Expert Alumni

How do i report income from sale of a car? how do i report purchase of a new home?

For the home purchase, the deductions that are available to you would be interest, real estate taxes, points and private mortgage insurance. These items are deductible in the Your Home section under the Deductions & Credit tab. See settlement statement items that may be deductible below. 

For the sale of a car, where you report the sale proceeds would depend on if this car was personal or used in business. 

If this was a sale of a personal car and you sold it for less than its purchase price, then you have a loss and it is not reported on your return. If you have a gain, then it is reported under the investment section.

If you used the car for business purposes, then report the sale in the business section it belongs to-Schedule C, E or F for example.

Items on closing disclosure form that may be deductible: 

  • interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
  • private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84-month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

http://www.dmv.org/articles/income-tax-implications-of-selling-a-used-car/

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1 Reply
PaulaM
Expert Alumni

How do i report income from sale of a car? how do i report purchase of a new home?

For the home purchase, the deductions that are available to you would be interest, real estate taxes, points and private mortgage insurance. These items are deductible in the Your Home section under the Deductions & Credit tab. See settlement statement items that may be deductible below. 

For the sale of a car, where you report the sale proceeds would depend on if this car was personal or used in business. 

If this was a sale of a personal car and you sold it for less than its purchase price, then you have a loss and it is not reported on your return. If you have a gain, then it is reported under the investment section.

If you used the car for business purposes, then report the sale in the business section it belongs to-Schedule C, E or F for example.

Items on closing disclosure form that may be deductible: 

  • interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
  • private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84-month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

http://www.dmv.org/articles/income-tax-implications-of-selling-a-used-car/

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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