So I sold my home in 2017. I lived there 22 years. My first home sale. When I put in all the numbers for fees paid, commission etc. and did the cost basis portion my federal tax owed went UP instead of down! Not sure why. I should be exempt from any tax on the sale of my principal residence. Especially since the difference between what I paid in 1995 and sold in 2017 was not large. What did I miss?"
Copy from motley fool. Here's what you can expect to pay the IRS if you sell long-term investments in 2017.Long-term capital gains are taxed at more favorable rates than ordinary income. The current long-term capital gains tax rates are 0%, 15%, and 20%, while the rates for ordinary income range from 10% to 39.6%.
Helpful hint review your basis's . Any additional accessories or improvements like remodels, no matter how big or small, and such were not deductible at the time of purchase over the last twenty plus years, however they do get to be added to your basis at the time of sale.
For the home sale, if this was your primary home you may not need to enter it all in TurboTax. You may exclude up to $250,000 ($500,000 for married filing joint) of the gain if all requirements are met.
Home exclusion requirements:
Do not report the sale of your main home on your tax return unless:
"For the home sale, if this was your primary home you may not need to enter it all in TurboTax"
In other words, if I do not enter it I cannot deduct the costs associated with the sale.
Is this correct?
True. If you are not required to report the sale of your home, the selling expenses are also not reported.
The gain or loss on the sale would be the sales proceeds less your adjusted basis less selling expenses. There is no separate deduction for the expenses from the sale of your home.