So we (My fiance and I) are selling a house on monday that we bought earlier this year. We were going to keep it as a vacation rental but decided to sell instead because we need the money to fix another house we bought at the same time. My question relates to the taxes on this. The title company wants to know how we want to take the check from the sale because they will be issuing a 1099. Does this mean were going to be paying tax on the total coming from the title company? We bought the house with cash and have no leins on it so were basically getting a check for the sale price.
No, the title co. simply had to report the net proceeds paid out. You’ll pay tax only on your “profit”.
Thats what i was hoping, nows probably a good time to find a cpa who specializes in real estate to work with.
was the title in your name? or did it also include your fiance?
I read your other posting that this sale is a fix&flip.
Make sure to include all receipts related to fixing the property.
also tally up driving to and from the property, including to reach out to any contractors.
Also any fees paid to the lawyer to draft up the contract.
All should be able to be added to the basis of the property when calculating the gain
Congrats on the fix&flip!
Good luck on the next one!
Basit Siddiqi, CPA
It was bought in both of our names and paid from a joint bank account. If we don't have receipts would a store credit card statement be useable? I kept lots of receipts but not all. Everything related to the house was paid for on a Menards store credit card or a Debit card which was only used for this house project.
Thank you, started the next one this week (right next door). Its going to be a total gut down to bare studs
Good luck on the project! Just make sure to send all of the applicable documentation to your CPA. We love documentation. So, if you don’t know whether to keep a copy or not, better to err on the side of caution.
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