1099s- sellers final closing statement-social security

Forum|Forum|1 year ago
March 18, 2025
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Hello:

I sold our house and moved to Oregon November 19 2024 is residency in Oregon according to new drivers license. How do I compute my social security for the 2 months in Oregon as my wife and I do joint tax return. We do take out 10 percent federal taxes and how do we put down the total under Oregon as is it done totally through Federal tax as also lived in CA until then. Will the federal tax carry over to Oregon or what happens with that second state. Which if any areas do I need to do for 2 state part resident being CA and Oregon.

Next-Did sell our home in CA and was wondering on our Sellers closing statement we have debit-like countyl taxes, payoff to lien holder of record(paid off our loan totally) Goverment recording and transfer charges, Commissions listing agent-selling agent, title charges, escrow charges, miscellaneous charges such as 3rd party courier service-hoa dues for october to hoa company, home waranty, natural hazard report fee, notary ofee to notary public, tc fee to transaction cordinator-can and how do we deduct those or which can be deducted and how plus will Turbo Tax run through this. What can be deducted on closing statement.

TurboTax Premier Online

AmyC

1. You will file 2 part year returns and allocate income to each state. Your income received in Oregon, like Social Security can be determined by looking at your records. Alternatively, 2/12 would be close enough. Just divide the total by 6 to get the OR amount.

2.Federal tax is allowed on the OR return and you can prorate it. You will have to go through all the categories for each return and allocate as needed.

3. The property tax paid at closing is still property tax and entered on Sch A or Sch E if rental. You won't deduct anything besides property tax and mortgage interest. However, costs that you can add to your basis are:

Escrow fees
Legal fees
Real estate agent commissions
Advertising costs
Owner’s title insurance
Abstract and title search fees
Recording fees
Survey fees
Transfer or stamp taxes

Since it was your main home and you are married, the first $500,000 of gain is excluded less any prior depreciation taken. If it was your main home that you lived in 2 out of 5 years, you may not need to report the house sale at all. See Topic No. 701 Sale of Your Home.

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mjckhcAuthor

Hello:

So then since have 2 states--and we don't receive w2 or wages but strictly retired-social security, pensions, ira distributions rmd have to do each year, investment dividends, mortgage interest,property tax--how do we compute the social security---do we put the total deposit with everything taken off--as takes off 10% federal taxes--medicare b-part c senior advantage-prescription. How do I list the remaining portions-is there a spot for each of those or do I just put the total after all deductions per person plus we both have pensions of which they take out 10% federal taxes. Also when the form on Oregon comes up does it have areas for me and my wife as we usually do jointly.Is there a separate area for both of us on the Oregon 1 form, So how do we list the pensions what amounts do we include federal taxes or what? In other words we again moved to Oregon--residency 11/19/24-can we put percentage down or what to make this easier.

Also where do we add to our taxes-- the escrow fees--and other fees on our taxes on the seller closing statement as we do have a 1099-s besides sellers closing cost.

In our other house we did get the place painted and also replaced carpeting in some rooms with vinyl wood. Can that be a deduction as was done a few months before selling to upgrade for example and if so where would that go.

Lastly can you mention again the procedure to get the 2nd state of Oregon online as again have the premier with turbo tax.

mglauner

You will file a Part-Year Resident return for both California and Oregon. In the state interviews, the total of an income category (Social Security, for example) will be carried over from your Federal return, and you'll make an adjustment to that amount for the state amount. Use the Gross Amounts you receive.

The easiest way to do this is to divide your total by 12, then multiply by number of months lived in that state. You could use 10 for CA, and 2 for OR.

All the sales expenses, plus expenses of getting the house ready for sale, would be added to your Cost Basis when reporting the sale. However, unless you have over 500K in profit (for MFJ), you won't need to report the sale on your tax return. Save your 1099-S and closing documents, plus any receipts for improvements, with your tax records, as documentation for your Cost Basis.

Here's more info on How to File a Part-Year Resident Return and Allocating Income for a Part-Year Resident.

Also, to help you, info on the Home Sale Exclusion and Calculating Your Home's Basis.

@mjckhc