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MichTax2019
Level 1

Sale of Second Some - Real Estate Commissions

I received 1099-S at closing.  It lists Gross Proceeds from sale of 2nd home.  I have not lived in the home for 24 months of the past 5 years so must pay capital gains. 

 

Turbo Tax asks for Net Proceeds for sale of Second Home. 

- Do I list $300,000, which is gross proceeds listed on 1099-S, or do I remove real estate fees of $18,000 and list net proceed of $282,000?  

- Or should I list the $18,000 real estate fees as Sales expense?

 

Can I also deduct Title closing fee, Title Insurance and payoff wire fee?

 

Your guidance is appreciated.

7 Replies
LeonardS
Expert Alumni

Sale of Second Some - Real Estate Commissions

Your net proceeds from the sale of your second home is the sale price less expenses of the sale.  This link to the TurboTax help page Tax Aspects of Home Ownership: Selling a Home has detailed information on the selling of your home that you may find useful.

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NCperson
Level 15

Sale of Second Some - Real Estate Commissions

yes, all that is subtracted from the sales price. 

MichTax2019
Level 1

Sale of Second Some - Real Estate Commissions

The information was very helpful.  Are you able to pro-rate the gain?  We were in the home for 19 months of the last 5 years.  Therefore, we don't make the 24 month threshold.  Is the 2 year requirement a firm requirement or is there a way to pro-rate the fact it was the primary residence for 19 months of the past five years?

 

Please advise.  Thanks.

NCperson
Level 15

Sale of Second Some - Real Estate Commissions

there could be a way to pro-rate, but it depends on what the circumstances were that caused you to move.....

 

why did you move?

 

AmyC
Employee Tax Expert

Sale of Second Some - Real Estate Commissions

Yes, the program can pro-rate if you meet the exceptions. Please review this IRS link on main home sale and exceptions.

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belfast67
New Member

Sale of Second Some - Real Estate Commissions

I sold a second vacation home may I deduct capital improvements from capital gains.  for instance anew roof, a porch, a septic system and bathroom.

RobertG
Expert Alumni

Sale of Second Some - Real Estate Commissions

Yes, you may deduct capital improvements on the sale of a second home.

 

Improvements become part of your basis, and decrease the amount of your gain.

 

You can list them separately or include them in your basis.

 

@belfast67

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