Invest. Real estate Capital Gains?


N

nearly_blind

In 2005 I bought and sold a parcel of undeveloped land (held
< 1 year) in a state across the country from my residence.
I received a 1099-S form from the closing company reporting
the gross sales $. I understand that this capital gain is
short term and therefore will be taxed as regular income.

My questions are:
1) On what form is the gain reported (e.g. Schedule D)
2) Does the form require you to entire the specific items
that went into computing the gain (cost basis of buy and net
proceeds of sale) or do you just report the two final
numbers?

For example additions to COST BASIS:
title fees, survey fees, travel expenses to closing

For example debits from net proceeds:
realestate commission, title insurance, travel expense
to closing, doc fees, etc.

Thanks.
@[email protected]
 
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P

Phil Marti

In 2005 I bought and sold a parcel of undeveloped land (held
< 1 year) in a state across the country from my residence.
I received a 1099-S form from the closing company reporting
the gross sales $. I understand that this capital gain is
short term and therefore will be taxed as regular income.

My questions are:
1) On what form is the gain reported (e.g. Schedule D)
That's the one, on line 1.
2) Does the form require you to entire the specific items
that went into computing the gain (cost basis of buy and net
proceeds of sale) or do you just report the two final
numbers?
Make sure your proceeds on Schedule D match the 1099-S
amount. If there were expenses of sale that aren't
reflected in the 1099-S amount, add them to your basis. The
only numbers you put on Schedule D are basis and sale price.
See Publication 550 and the Schedule D instructions.
 
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