I sold a second home in 2016. Can I claim closing costs? If not can I reduce the Gross Proceeds on 1099-S by those costs?

[MargaretL · Accepted solution]

Yes, you can deduct selling expenses from the sales price (gross proceeds). Almost all closing costs can be listed. Sales expenses are listed in the sellers column of your settlement statement and include:

• commissions
• appraisal fees
• broker's fees
• legal fees
• advertising fees
• home inspection reports
• title insurance
• transfer taxes or fees
• geological surveys
• loan charges (points) or other fees paid on the buyer's behalf
• any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

Sales expenses do not include:

• mortgage payoffs
• home equity loan payoffs
• rent-back costs
• payoff to creditors
• property taxes
• home owner association fees

[neramseyer]

What version of Turbo Tax do I need to do this .  I don't see anyplace in Turbo Tax Deluxe to put these expenses.

[VolvoGirl]

You need to upgrade to Online Premier to enter investments or any Desktop program.  All the Desktop programs have the same forms. You just get more help and guidance in the higher versions.