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Jprebich
New Member

Moving deductions

Moving from nj to sc. can I deduct realtor commissions, any work done to sell my house, etc? 

2 Replies
Drew-M
Employee Tax Expert

Moving deductions

Hello!

 

The short answer is yes you can!

 

Deducting expenses when selling a home can be a bit tricky. Instead of deducting the expenses, you are going to add them to the cost basis (the original purchase price). 

 

Some items that you can add to the cost basis:

 

• Abstract fees (abstract of title fees).
• Charges for installing utility services.
• Legal fees (including fees for the title
search and preparation of the sales contract and deed).
• Recording fees.
• Surveys.
• Transfer or stamp taxes.
• Owner's title insurance.
• Any amount the seller owes that you agree
to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

 

When reporting the home sale, you will be given a 1099-S form. Within TurboTax, you then will determine the cost basis (original purchase price + any qualifying expenses).

 

Hopefully this answers your question!

 

__________________________________

More information can be found here:

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-home-improvements-on-my-t...

 

IRS sourced material:

https://www.irs.gov/forms-pubs/about-publication-530

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mfields2
Employee Tax Expert

Moving deductions

The sale of property (real estate) is actually separate from potential moving deductions.  The costs of the sale (brokerage commissions, fees, taxes, etc.) and the cost of any home improvements are factored in to the capital gains (profit you make) from the sale of the house - they are not a part of moving expenses.

 

If you sold your primary personal primary residence and you lived in and owned the home for at least two years in the five year period on the date of sale, 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).  If you had a gain greater then the exclusion amounts then you would have to report the sale.  Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.  

 

To calculate the gain, you add the amount you paid for the home, plus any improvement costs - this is your basis.  To determine your "gain", take the sales price of the home and subtract all of the realtor fees and other transaction fees to complete the sale, then subtract the basis.  What you have left over is your gain, and is subject to the exclusion amounts listed above (if it is excluded, there is no tax on the profit - i.e. the "gain").

 

You will need the online TurboTax Premier or Home and Business edition to report the sale.

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