Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
jbblumhardt
New Member

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

 
1 Best answer

Accepted Solutions
SweetieJean
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

5 Replies
SweetieJean
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

Mortgage payoff is irrelevant
Critter
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

Your cost basis is the inherited value + improvements + cost of sale.
SweetieJean
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

Hal_Al
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

In the interview, SweetieJean references, TurboTax will ask for the "Expenses of Sale" That's where you enter the deductible closing costs. In actuality they are not "deducted" but added to your cost basis to reduce your capital gain. Review IRS Pub 523, page 11,  for a list of the expenses you can consider as sales expenses.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p523.pdf">https://www.irs.gov/pub/irs-pdf/p523.pdf</a>
As others have indicated, mortgage payoff is not a closing cost and is not deducted or added to your cost basis. It is simply not taken into account at all.
VolvoGirl
Level 15

I put in the gross proceeds on the 1099-S from sale of inherited house but no place to deduct my closing costs and mortage payoff. The check I received was considerably less than the gross proceeds

Did you have a mortgage on it or were you paying off the deceased mortgage?  When you inherited it you got a step up in value to what is was worth when you inherited it.  How long did you have it before you sold it?  Did you live in it?
Dynamic AdsDynamic Ads
Privacy Settings
v