Sold a second home. does net proceeds mean the net amount I made on the house after deducting initial cost, realtors fees and additional expenses

[WillK · Accepted solution]

Yes that is exactly what it means. For a property the net proceeds is the price of the house minus commissions, closing costs, repairs and inspections and realtors charges.

[fanfare]

Enter the gross proceeds (consideration). TurboTax asks for the expenses of sale separately and makes the adjustment on the forms for you.

Do not subtract initial cost. Enter that as the cost basis.

Gain or loss will be calculated by TurboTax.

If any gains are ineligible, TurboTax will try to figure that out by asking you when and how long you lived in that residence.