How to determine home basis amount from settlement statement

[dobels12]

I sold my primary home in 2020, and I need to report it on my federal taxes. I've dug up the old settlement paperwork from when I purchased the home in 2008 to determine my basis (attached for your reference). I'm not sure which number to report. Is it the $300,000 in line 101 (contract sales price), or the $297,300 at line 303? Also I read on the IRS website that HOA fees are not counted for the basis. I'm very confused about what counts and what doesn't. Does it matter if I make a minor mistake? The capital gains I made falls well under the primary home exclusion amount (which I qualify for), so I wouldn't owe capital gains tax regardless of which number I choose as the basis (line 101 or line 303). Any help would be appreciated thanks.

[Irene2805 · Accepted solution]

Line 101 (contract sales price) is the basis of the property. 

This is the starting point.  From there you add certain settlement fees paid when you bought the home and the cost of any improvements made to the home.

For more information, see the following IRS articles:

• Pub. 523 - Selling Your Home   (currently being edited for 2020)
• Sale of Residence - Real Estate Tax Tips

NOTE:  If you lived in and owned the home for at least two out of the last five years, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in and owned the home for two years).