Q) We bought our home in 2000 for $60,500. We sold it this last July for $60,000. How do I put this on my income tax return for 2018?
A) You will need to file Form 8949, Sales and Other Dispositions of Capital Assets, to report the sale of your home. On this form, you will need to report the purchase price of your home, the sales price of your home, and the amount of any gain or loss. You will also need to report the amount of any depreciation you have taken on your home.
If you have a gain on the sale of your home, you will need to pay capital gains tax on the amount of the gain. The capital gains tax rate is based on your income. If you have a loss on the sale of your home, you may be able to deduct the loss from your other income. However, there are some restrictions on the amount of loss that you can deduct.
You can find more information about reporting the sale of your home on the IRS website.
Here are some additional things to keep in mind when reporting the sale of your home on your tax return:
- You may be able to exclude some or all of the gain from your income if you meet certain requirements. For example, you may be able to exclude the gain if you lived in the home for at least two of the five years before the sale.
- You will need to provide the closing date of the sale, the name and address of the buyer, and the sales price.
- You will need to attach Form 1099-S, Proceeds From Real Estate Transactions, to your return if you received one from the buyer.
- If you have any questions about reporting the sale of your home on your tax return, you should consult with a tax professional.