A gain on a loss on a home sale? Am I missing something here? This is a sale of a simple main residence.
We sold our old house for $131500 and had an adjusted basis of $141000. Selling expenses were around $9000 so we have realized proceeds of $131500 - $9000 = $122500. Based on basis that gives me a loss of $18500. On Schedule D I have to add back the loss as a non deductible loss so I end up with a gain ($131500 sale - $141000 basis + $18500 adjustment to gain/loss = $9000)?
Maybe I'm just looking for logic here (hahaha). Is the logic that I'll only be taxed at 15% for this portion of my income rather than at a higher rate based on the later portions of Schedule D, or am I really messing something up? |