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howardfpavlat
New Member

I sold property in Michigan, what form do I need to fill out,what do I need from the buyer. Is the sale of the property considered capital gains?

 
1 Reply
DawnC0
Intuit Alumni

I sold property in Michigan, what form do I need to fill out,what do I need from the buyer. Is the sale of the property considered capital gains?

You may or may not have a Form 1099-S from the transaction.  If you do, it must be included.  The closing statement will be helpful in reporting deductions (closing costs, your sales commissions, expenses of sale, pro-rated real estate taxes, pro-rated mortgage interest, and private mortgage insurance).  And yes, the gain, if there is one, is a capital gain.  

You will probably need to file a Michigan state return as they can tax non-residents for Michigan sourced income.  

If you lived in a home on the property for 2 out of the last 5 years, the gain can be excluded.  The sale of your main home is reported under Less Common Income in the Wages & Income section.  

For more information on selling a home, see the link here - https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t....  This article explains how to figure your gain, factoring in your basis, home improvements and more.

Where do I enter the sale of a second home, an inherited home, or land?  Click here to see where and how to enter the sale of a second or inherited home or land in TurboTax. 

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