How to deduct closing costs from sell my home

TomWuellette
TomWuellette Member Posts: 2 Newcomer
in Filing my taxes

Sold my house last year, and am itemizing deductions due to large medical bills.

What is the process to enter the amounts for agent commissions, advertising, etc when I work through all the data entry. This is the only bit I'm having trouble with.

Thanks

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  • JMSSGV
    JMSSGV Member Posts: 154
    Answer ✓

    Those are not deductions. They can only be used to reduce your proceeds (sales price.) The only itemized deduction (Federally) are mortgage interest, state and local taxes, charitable contributions, and medical expenses in excess of 7.5% of AGI. Your state may have different rules.

    Your gain on the house is calculated as Proceeds (less selling costs) minus Basis (original cost, usually, plus capital improvements.)

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