We sold our primary residence in 2016. What expenses can be deducted?
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kate1946
New Member

We sold our primary residence in 2016. What expenses can be deducted?

 
2 Replies
Texas Roger
Level 15

We sold our primary residence in 2016. What expenses can be deducted?

If you paid any property taxes at the time of sale, those could be deducted. It is unlikely there would be any other deductions.
Critter
Level 15

We sold our primary residence in 2016. What expenses can be deducted?

If you meet the requirements of the gain exclusion, you have no reporting requirements regarding this transaction

Yes, you can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse

See this IRS link for more information on the exclusion:

https://www.irs.gov/taxtopics/tc701.html

Additionally, please refer to this TurboTax link for more information:

https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Tax-Aspects-of-Home-Ownership--Selling...

Please note that if you get a Form 1099-S for this sale, that means the IRS also got a copy and you will need to report this information into TurboTax. (But don't worry, TurboTax will guide you on excluding this gain on your taxes)

To enter this transaction in TurboTax (you may need to upgrade to premier to enter this information), log into your tax return and type "1099-s, sale of main home" in the search bar then select "1099-s, sale of main home" Say "yes" that you sold your main home and TurboTax will guide you on entering this information. You will need:

·       The date you sold your home and the selling price (from your closing statement)

·       The date you bought your home and the purchase price (from your closing statement)

·       The cost of any major improvements you made, so we can deduct them for you

·       Form 1099-C if you sold your home at a loss (short sale)

Just remember to check the box to have your home sale reported on your tax return but ONLY if you receive a 1099-S

 


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