Don't worry about the paperwork to back up your calculations. I doubt the IRS would question your figures on the cost basis of a house built 30 years ago.
The sale of a
principal residence is generally not reported on a taxpayer's return unless the
taxpayer:
- Has a gain and does not qualify to
exclude it all.
- Has a gain and elects not to
exclude it.
- Receives a Form 1099-s for the
sale.
Gain of up
to $250,000 ($500,000 for married filing jointly) is excluded from tax.
If you wish to enter
the sale of your home in TurboTax to determine if there was a gain, please
follow these steps:
- Click on Federal Taxes [Personal
in Home & Bsns edition] > Wages & Income
- Scroll down to the Less Common
Income section and click on the Start/Revisit box
next to Sale of Home (gain or loss). [See Screenshot #1,
below.]
- On the next screen, Sale of
Your Main Home, click Yes.
- Continue through the screens,
entering the requested information.
TurboTax will
calculate the gain on your property and the amount that can be excluded from
tax.
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