Sale of Residence - Expense of Sale

Forum|Forum|5 years ago
May 7, 2021
1 reply
21 views

When entering the sale of a personal residence, I enter "Expenses of sale...", but this amount does not show up in the forms as either an adjustment to the sales price or a Form 8949 column g adjustment. Any ideas on what I may be doing wrong? Thank you.

Lacerte Tax

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Best answer by PKCPAMST

Here is how Lacerte calculates Column (g).

First, it calculates Column (d) – Column (e).
Then, it compares the difference in Step 1 to the home-sale gain exclusion for the filing status.
If the difference is less than or equal to the applicable gain, it does not add the selling expenses to Column (g).
If the difference is more than the applicable gain, it does add the selling expenses to Column (g).

Example: A married couple sells a home in 2020 with a cost basis of $200,000, incurring $25,000 in selling expenses. The couple qualifies for the full Sec. 121 exclusion. The following screenshot shows the effect of selling price on Columns (g) and (h).

sjrcpa

Level 15

Is it being added to the basis?

The more I know the more I don’t know.

D

drbdrbAuthor

Level 4

No, it is not added to the basis.

P

PKCPAMSTAnswer

Level 6

Here is how Lacerte calculates Column (g).

First, it calculates Column (d) – Column (e).
Then, it compares the difference in Step 1 to the home-sale gain exclusion for the filing status.
If the difference is less than or equal to the applicable gain, it does not add the selling expenses to Column (g).
If the difference is more than the applicable gain, it does add the selling expenses to Column (g).

Example: A married couple sells a home in 2020 with a cost basis of $200,000, incurring $25,000 in selling expenses. The couple qualifies for the full Sec. 121 exclusion. The following screenshot shows the effect of selling price on Columns (g) and (h).

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