sale of house not lived in ?

[nottelybill]

What is the name of your state (only U.S. law)? Georgia I apologize because I asked a similar question before but still not clear in my mind. I owned the house about 5 years and just sold it last year. It is my understanding that I report the gain on the same form as my stocks showing cost and sold for price. But how do I describe it? Just say house at the address and fill in the numbers and that is it? Thanks

 

[tranquility]

What is the name of your state (only U.S. law)? Georgia I apologize because I asked a similar question before but still not clear in my mind. I owned the house about 5 years and just sold it last year. It is my understanding that I report the gain on the same form as my stocks showing cost and sold for price. But how do I describe it? Just say house at the address and fill in the numbers and that is it? Thanks

It depends. Was it a business property in that you rented it out and took depreciation? Or, was it an investment property or second/vacation home?

 

[FlyingRon]

Tranquility raises valid points.

The house is subject to capital gains tax indeed. There's an exclusion for those who have used the house as their personal residence (which you seem to imply is not the case). Further, if the property was (or should have been) depreciated, that needs to be recaptured (it's a different computation than just deducting the depreciation taken from the basis these days).

Lots of information here: https://www.irs.gov/pub/irs-pdf/p523.pdf

 

[LdiJ]

What is the name of your state (only U.S. law)? Georgia I apologize because I asked a similar question before but still not clear in my mind. I owned the house about 5 years and just sold it last year. It is my understanding that I report the gain on the same form as my stocks showing cost and sold for price. But how do I describe it? Just say house at the address and fill in the numbers and that is it? Thanks

If you are not clear on things you really might want to consider using a tax professional this year. Selling a home is a large capital transaction and you do want to get it right.

 

[nottelybill]

I just bought and was going to let my kids use it on weekends but they are so tied up in other things, so I sold it.

 

[tranquility]

I just bought and was going to let my kids use it on weekends but they are so tied up in other things, so I sold it.

Then it will be just like your other sales on schedule D with a description of the address. Don't forget the cost of the sale.

 

[LdiJ]

Then it will be just like your other sales on schedule D with a description of the address. Don't forget the cost of the sale.

Just to expand, original purchase price plus major improvements is your basis, and sales price minus realtor/closing costs is your sales proceeds.