ChristineW
Junior Member
What is the name of your state? CT
When reviewing potential capital gains tax for next year based on the purchase and sale of a non-resident home, I need to know how to handle seller credited closing costs.
For example, when the home was purchased in January, the seller credited me $5000 towards closing costs. Does this need to be deducted from the Cost Basis of the Capital Gains Calculator or reduced from the "Transaction Costs"?
On the flip side, when I just sold the home, I credited the new buyers $5000 towards their closing costs. Can I include this as part of my "Transaction Costs" when figuring out the total Net Proceeds From Sale?
Also, I was told I can deduct costs associated with the purchase of the home under the Transaction Costs. Does that include City/Town taxes I paid for 6 months? In other words, can I use this to both reduce my Capital Gains and then again when I go to itemize?
Thank you in advance for any info.
Christine
When reviewing potential capital gains tax for next year based on the purchase and sale of a non-resident home, I need to know how to handle seller credited closing costs.
For example, when the home was purchased in January, the seller credited me $5000 towards closing costs. Does this need to be deducted from the Cost Basis of the Capital Gains Calculator or reduced from the "Transaction Costs"?
On the flip side, when I just sold the home, I credited the new buyers $5000 towards their closing costs. Can I include this as part of my "Transaction Costs" when figuring out the total Net Proceeds From Sale?
Also, I was told I can deduct costs associated with the purchase of the home under the Transaction Costs. Does that include City/Town taxes I paid for 6 months? In other words, can I use this to both reduce my Capital Gains and then again when I go to itemize?
Thank you in advance for any info.
Christine