Taxes and deductions for seller of home

[MyName]

I bought my house in New Jersey for $150,000 decades ago.  I sold it in 2019 for $250,000.   This would be tax free as I understand it.  I'm single, a senior, and lived there for 30 years.

Do I need to report this sale on my 2019 tax form?  Would the title company NOT send a 1099-S form to the IRS and to me?

Can I have as tax deductions the following seller costs that I see on the Closing Disclosure form?  Even if I do not report the sale (no 1099-S)?

- Property Tax

- Real Estate Commission (both the Buyer and Seller brokers)

- State Transfer Fee

- Seller attorney Fee

[DianeC958]

No, you do not need to report the sale of your main residence on your tax form since you meet the requirements to exclude the gain.

If you do receive a 1099-S form then you want to report the sale of your house in your tax return to show that none of the gain is taxable.

Links to Tax Aspects of Home Ownership

[MyName]

If I don't report the house sale, can I still claim the tax deductions for costs from the sale of my house as listed above?

[JosephF8]

Property tax is not a cost of sale and would not be used to figure your gain on the house. However, property taxes paid on your main or second home is tax deductible on you federal tax return. In NJ property taxes paid on your primary residence is tax deductible on the NJ return.

[MyName]

But if I do not report the sale of the house (because it is considered tax free), can I still have the following as a tax deduction because I paid these fees?

- Real Estate Commission (both the Buyer and Seller brokers)

- State Transfer Fee

- Seller attorney Fee

[KurtL1 · Accepted solution]

You should report the sale of your residence if you received a Form 1099-S from the real estate agent. This form was reported to the IRS and they will be looking for the sale on your return. If you are not sure about the Form 1099-S you should include the sale on your return.

When reporting the sale, the exclusion amounts of $250,000 and $500.000 will be shown on the return.

To enter the sale of your home:

1. Enter Sale of home in the Search Magnifying Glass in the upper right hand corner of the screen.
2. Select Jump to sale of home. 
3. Answer the questions on the screens.

These following entries from the closing statement, are not deductible but are added to the purchase price of the home to increase the basis on the home and reduce the gain on the sale of the home.

• Real Estate Commission (both the Buyer and Seller brokers),
• State Transfer Fee, and
• Seller attorney Fee.