Sale of a second home - proceeds and total amount paid fields in Turbo Tax

[jerake]

Bought a second home in 2018 for 115,000, sold it in 2019 for 135,000.  I did not receive a 1099-S or any other escrow settlement statement, but for a second home I am reporting it under Investments in Turbo Tax.

In Turbo Tax specifically, I want to clarify the definitions for "Proceeds" and "Total Amount Paid" specifically for a second home sale, as they seem geared towards stocks not property sales.

For Proceeds, does that mean the home sale price (e.g. 135,000), or is that the cash I received at closing, after deducting fees, closing costs and mortgage payoff?

For Total Amount Paid, is that the purchase price of the home (e.g. 115,000) or does that include closing costs, fees, etc.?

Thanks - 

Tina

[ColeenD3]

Proceeds is the amount on your HUD-1 under contract sales price.

Your cost is your purchase price plus expenses of sale and any improvements you might have made.

Sales expenses 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

[jerake]

Thanks...however I don't have a HUD-1 form.  I have a Closing Disclosure, all of two pages from the closing in December.  But since it's contract sales price, that's 135,000.

For cost, you mean Total Amount Paid I suppose - I'll have to get my closing statement from purchasing and get the total from there.

Thanks for clarifying, the confusion here is holding up filing my taxes.

Tina

[AmyC]

Your cost basis is what you paid originally plus any allowable purchase fees and sales fee plus any capital improvements made. Make a note of how you arrived at the answer and keep a copy of the paperwork with this year's tax file.

The closing paperwork is perfect. It clearly shows what you were paid and the expenses. Keep a copy with your tax records.