How do I calculate the selling expenses of my home

Forum|Forum|7 years ago
June 7, 2019
6 replies
6 views

Is the payoff of my mortgage and owed property taxes on a home sale considered a selling expense of the home?

TurboTax Deluxe Online

Best answer by

Follow the step by step guide and answer the questions as they relate to your situation.

Sales expenses 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

Sales expenses do not include:
- mortgage payoffs
- home equity loan payoffs
- rent-back costs
- payoff to creditors
- property taxes
- home owner association fees

See below for more information.
https://ttlc.intuit.com/replies/3302480

travismriley

Level 2

Can anybody point to the code section that authorizes these expenses?

SweetieJean

Alumni - Champ

<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p523.pdf">https://www.irs.gov/pub/irs-pdf/p523.pdf</a>

SweetieJean

Alumni - Champ

<a rel="nofollow" target="_blank" href="http://www.nolo.com/legal-encyclopedia/when-home-sellers-can-reduce-capital-gains-tax-using-expenses-sale.html">http://www.nolo.com/legal-encyclopedia/when-home-sellers-can-reduce-capital-gains-tax-using-expenses-sale.html</a>

travismriley

Level 2

These resources are helpful, but I am searching for primary sources of authority. The closest I can find is a Treasury Regulation related to IRC Sec. 1034, which was repealed.

LB641

Level 5

When entering the Gross or Net on the sale of a lot, are the real estate taxes included in the cost of the sale? Or should they not be included in my cost for the sale? Also, our 1099-S only shows Gross Proceeds. However, turbo tax asks for Net, not gross. Do I use the 1099-S Gross figure, or can I use the net figure on the closing statement instead of the 1099-S Gross figure. And would the real estate taxes have to be factored out? thanks

Anonymous

Answer

Follow the step by step guide and answer the questions as they relate to your situation.

Sales expenses include:

Sales expenses do not include:
- mortgage payoffs
- home equity loan payoffs
- rent-back costs
- payoff to creditors
- property taxes
- home owner association fees

See below for more information.
https://ttlc.intuit.com/replies/3302480