I am selling my house for $310,000 but I have a partial reverse mortgage on form 1099-S what amount should I disclosed? 310 or the balance?

[slallbright]

I am selling my house for $310,000 but I have a partial reverse mortgage on form 1099-S what amount should I disclosed? 310 or the balance?

[fanfare]

@slallbright 

at tax time, settlement of your conventional mortgage does not go on your tax return.

I guess you know that.

What is a partial reverse mortgage?

The amount shown on 1099-S is reflecting what, exactly?

[akphoneguy]

Its fairly complicated.  The issue is how much gain did you have on your house.  You bought it for $50,000 with a sale at $310,000, then, potentially, you have a $260,000 gain.  You can (as a single filer) deduct a $250,000 gain on your principal residence ($500,000 if married).  Your are limited by years of occupancy, previously taking the exclusion (see:  https://www.irs.gov/taxtopics/tc701).  You can also reduce your gain by the cost of sale (realtor fees, sales tax or equivalent).  The fact that you had a reverse mortgage that might mean that your take on the house was small at sale, is not relevant to how it is handled for tax purposes.  Mortgage payoff is not part of the tax calculation.