I sold a home in NC and paid City/County tyax/stamps at closing, line 1204 on my HUD-1 statement. If so is it for both Fed and State?

[DianeW · Accepted solution]

The County tax stamps or transfer taxes are part of the selling expense used to reduce gain. 

If you are asking if the sale is reported on both federal and state the answer is yes, if you do not meet the home sale exclusion rules. If you meet the home sale exclusion then the gain is not reported on the federal return and in turn is not reported on NC. 

The property taxes paid at closing, shown on your HUD-1 statement, are a deductible itemized deduction.

If you made money on the sale of your house, we can help you find out if this profit is tax-free, up to $250,000 ($500,000 for married filing jointly).  In your case you would each report half of the sale, purchase price, sales and purchase expenses.

• Select Federal in the black navigation panel on left > Search box type sale of home > Jump to sale of home
• Continue to enter your sale - if you qualify there will be no entry on your tax return.