Level 2

Question

Sale of Home

Forum|Forum|5 years ago
March 8, 2021
8 replies
41 views

Hello,

I used the Pro Series Basic Program.

When you sell your home and pay off your mortgage balance in full with the proceeds of the sale, where does the mortgage balance paid off go on Sch D or 8949 form (s)?

Please respond.

Thank you

ProSeries Basic

This topic has been closed for replies.

A

athaureaux6

Level 7

I think you need to provide more information. Was it your main home? Did you take the main home exception? I think you need to be more specific about your question.

sjrcpa

Level 15

Nowhere.

When you bought the house, the mortgage was part of the purchase price.

Paying it off doesn't give you a deduction.

The more I know the more I don’t know.

IRonMaN

Level 15

Without trying to sound nasty, if you are asking that question, you really need to do a little more homework on property sales before you finish that return. You need to make sure you have the proper costs factored into the cost basis for the sale and you don't say if you are generating a gain or a loss on the sale. If a gain, you really need to make sure a if the gain is indeed taxable. If a loss, if it's personal property, it isn't deductible.

Slava Ukraini!

P

Pat111Author

Level 2

Thanks for replying to my question. My sister in law bought the house at a very low price back in 1980, but she refinanced it so many times she had over 252,000 to pay back the mortgage. The selling price was over 400000.00. It would like she had a large gain but the mortgage balance was paid off.

She gets the maximum exclusion (she is single) which is 250,000 and closing costs and selling expenses about 40000.

The remaining amount cannot use the mortgage payoff as a deduction if she had no improvements done on the house?

IRonMaN

Level 15

Original cost + improvements + closing costs = basis.

What she nets out because of loans has nothing to do with the calculation.

Slava Ukraini!

Just-Lisa-Now-

Intuit Community Champion

The mortgage that got paid off is generally part of your profit.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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