We sold an inherited home which had been vacant 4 years and never rented. I followed the link for sale of a second home and entered my 1099-S info which shows the gross amount of the sale. I incurred realtor and lawyer costs deducted from my sale proceeds at closing. How are these entered in TT ?
You add the realtor, lawyer and other closing costs to the cost of the property.
Yes, report it as investment sale.
You can deduct the selling expenses from the gross proceed.
Sales expenses include:
Yes, I know what can be deducted. My question is how do I enter it in Turbo Tax ?
You add the realtor, lawyer and other closing costs to the cost of the property.
OK, I went down that path only to find TT was not allowing a capital loss on the property. My understanding is since we never lived in the house I can treat it as investment with capital loss, so would I enter it instead as an investment of type "everything else" ? If so, is there a way I can show the closing costs as an adjustment to the gain/loss on form 8949 (columns f+g) ? This would be consistent with the IRS instructions, but the interview questions don't seem to give me that option . . .
Yes, report it as investment sale.