I sold my primary residence in 2018 and it wants my expenses for when I bought the house in 2001. Why is that necessary?

[DDollar · Accepted solution]

It's asking because certain closing costs are added to the purchase price to determine your cost basis, which is used to determine any gain.   If it was your primary residence and your are eligible to exclude the gain without it (or you have a loss) , you can enter zero.  If the program doesn't want to accept 0.00, then enter 1.00  If you have a taxable gain on the sale you would want to include the costs to reduce your gain.

[vando5150]

Thank you.  I don't even know where to look for paperwork I did 18 years ago.  All I know is that our total profit after loan payoff was 91k and I'm filing jointly.  Is all of the paperwork required?  I have my final seller's statement and the 1099-S.  

[DDollar]

Are you eligible to exclude the gain?  Did you live there two out of the last five years and you haven't taken an exclusion for sale of a residence in past two years?

[vando5150]

Lived there for 18 years non-stop.  Haven't sold any real estate since 1999.  

[DDollar]

Unless your gain is more than $500,000 you don't need t worry about it.  I believe you said it was 91K, so no worries!

[vando5150]

I just leave that blank?  Even if I got a 1099-S?

[DDollar]

You still have to report the sale.  But you will exclude the gain, as you are selling your primary residence.  But you don't have to include expenses (e.g. closing costs) in your cost basis.