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If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)
If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).
TO ENTER THE SALE OF YOUR PRIMARY HOME
NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter
Selling expenses:
Commissions
Appraisal fees
Legal fees
Advertising fees
Home inspections reports
Title insurance
Transfer tax or fees
Geological surveys
Loan origination points paid on behalf of buyer
NOT selling expenses
Mortgage or HELOC payoffs
Rent back costs
Payoffs to creditors
Property tax
HOA fees
You can deduct any mortgage interest or real estate taxes charged at closing. But, almost none of the closing costs incurred on a sale of a home are deductible. Other closing costs (Title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, home inspection, flood certificate, attorney fees, etc.), instead of being deductible, reduce the sales price of the property.
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