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fitzhuron
New Member

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

Can I deduct realtor fees, seller concessions, inspection fees, and any money I put into the house, like electricity and repairs?
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1 Best answer

Accepted Solutions
LindaA
Expert Alumni

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

That depends. If you meet the requirements to exclude the gain and did not receive a Form 1099-S, you don't need to report the sale on your tax return.

If this was your main home, you may be able to exclude up to $250,000 of gain on the sale ($500,000 if you are married and filing jointly) if you meet these requirements:

  • You owned the home
  • It was your main home for two years or more within the five years leading up to the sale
  • You haven't taken this exclusion in the last two years
  • You never used the home for rental or business

For more information, please see IRS Pub 523, Selling Your Home. Note: Even if you are able to exclude the gain from the sale of your main home, you'll need to report the sale if you received a Form 1099-S.

During the sale of home section of the tax interview, TurboTax will ask questions to see if you qualify to exclude the gain on the sale of home and determine if you need to report the sale on your tax return. 

To get to the sale of home section of TurboTax:

  • Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in, click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.In the pop-up window, select Topic Search
  • In the search bar, type sale of home
  • In the results box, highlight sale of home, then click GO.
  • You'll land on the Sale of Your Main Home page. Click Yes and follow the onscreen instructions to complete this section. 

When entering the sale, you'll be asked for selling expenses. Deductible selling expenses are listed in the seller's column of your settlement statement and 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

Note that selling expenses do not include:

  • Mortgage payoffs
  • Home equity loan payoffs
  • Rent-back costs
  • Payoff to creditors
  • Property taxes
  • Homeowner association (HOA) fees

Another item you'll need when reporting the sale of your home is the adjusted cost basis. This is the cost of your home adjusted for tax purposes by permanent improvements you've made or credits you've taken. Improvements increase the basis; credits decrease the basis. Improvements are expenses you paid to restore the property or to adapt it to a new or different use. An improvement is not the same thing as a repair, which merely maintains your home in good condition. 

View solution in original post

5 Replies
fitzhuron
New Member

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

I did not receive a 1099S, so I should not claim? I would not mind claiming it, since it was a loss. If it's a loss, I would get some of that money back wouldn't I?
LindaA
Expert Alumni

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

No, you can't claim a loss on the sale of your main house. This is considered a personal loss and is not deductible for tax purposes.
fitzhuron
New Member

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

Bummer. But I can break even and not owe anything based off what you said I could claim. I'd be ok with that. Thank you
LindaA
Expert Alumni

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

You're welcome.
LindaA
Expert Alumni

I sold my house in December and was supposed to get a capital gains document and it never came. Do I still need to claim that? What deductions can I use?

That depends. If you meet the requirements to exclude the gain and did not receive a Form 1099-S, you don't need to report the sale on your tax return.

If this was your main home, you may be able to exclude up to $250,000 of gain on the sale ($500,000 if you are married and filing jointly) if you meet these requirements:

  • You owned the home
  • It was your main home for two years or more within the five years leading up to the sale
  • You haven't taken this exclusion in the last two years
  • You never used the home for rental or business

For more information, please see IRS Pub 523, Selling Your Home. Note: Even if you are able to exclude the gain from the sale of your main home, you'll need to report the sale if you received a Form 1099-S.

During the sale of home section of the tax interview, TurboTax will ask questions to see if you qualify to exclude the gain on the sale of home and determine if you need to report the sale on your tax return. 

To get to the sale of home section of TurboTax:

  • Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in, click Take me to my return.)
  • Click My Account (top right of your screen).
  • Select Tools.In the pop-up window, select Topic Search
  • In the search bar, type sale of home
  • In the results box, highlight sale of home, then click GO.
  • You'll land on the Sale of Your Main Home page. Click Yes and follow the onscreen instructions to complete this section. 

When entering the sale, you'll be asked for selling expenses. Deductible selling expenses are listed in the seller's column of your settlement statement and 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

Note that selling expenses do not include:

  • Mortgage payoffs
  • Home equity loan payoffs
  • Rent-back costs
  • Payoff to creditors
  • Property taxes
  • Homeowner association (HOA) fees

Another item you'll need when reporting the sale of your home is the adjusted cost basis. This is the cost of your home adjusted for tax purposes by permanent improvements you've made or credits you've taken. Improvements increase the basis; credits decrease the basis. Improvements are expenses you paid to restore the property or to adapt it to a new or different use. An improvement is not the same thing as a repair, which merely maintains your home in good condition. 

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