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Old 02-01-2011, 12:18 PM
2,188 posts, read 2,515,902 times
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10 Often Overlooked Tax Deductions

I came across this article talking about overlooked tax deductions. One of them surprised me, the part about deducting costs of selling your home like realtor commission? I don't believe you can deduct this, except maybe against the capital gain if you have any. When I was entering my tax info in software there was no where to put the deduction, which led me to believe I was right. Am I wrong or is the writer of this article just way off base? Excerpt below...

Overlooked Tax Deductions When You Sell Your Home
If you were lucky enough to sell your home last year, you have some tax deductions coming to you. You can deduct the costs associated with selling your home, including the commission you paid your real estate agent, any legal fees and closing costs.
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Old 02-01-2011, 01:23 PM
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That is one crappy article- full of partial information. Yes, real estate commissions reduce the amount realized from the sale of a house. It is not a separate line item deduction. The new amount realized should then be compared to the adjusted basis of the house. If there is a gain, the home meets the primary residency rules (and hasn't been depreciated for a home office deducted), then $250k of gain is excluded for single filers and $500k for those filing MFJ.

But this article is so bad, they don't even mention the 2% of AGI limit when talking about miscellaneous deductions. In addition, they aren't even up on tax law as they've already had to correct the article once for erroneous information. I wouldn't worry about what they wrote.
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