Sale of a non principal residence
I have gross proceeds on sale of house of $50,000.
Expenses on sale of house (commissions, closing cost, etc) of $5,000. Fair market value at time of sale $55,000. This home was inherited and not a principal residence.
On schedule D do I add the expenses of selling to the fair market value and enter that in box e) cost or other basis or subtract the expenses from the gross proceeds (gross proceeds appear on the 1099-s) and put that net number in box (d ) sales price . Since I will be efiling, if I use the net proceeds in box (d) it will not match what the IRS show on the 1099 submitted to them from the title company.