Recently sold contract

[DisneyMom2008]

I sold my contract and made a profit from the sale. I file my taxes using Turbo Tax and was hoping someone who uses TT tell me where the 1099S should be entered.

 

[thank_the_phoenicians88]

I sold my contract and made a profit from the sale. I file my taxes using Turbo Tax and was hoping someone who uses TT tell me where the 1099S should be entered.

Curious - does your profit account for all of the annual dues you’ve paid since you bought?

 

[DisneyMom2008]

Curious - does your profit account for all of the annual dues you’ve paid since you bought?

I owned the contract for 2 years and didn't pay any dues the first year. Made over $7,000 profit after loan paid off and before commission.

 

[NeutralNovice]

Nice profit!

Curious, if you don't mind my asking. How much was your contract per point originally?

 

[thank_the_phoenicians88]

Ahh, okay! I was going to say that you could cut down your tax liability with the dues (capital reserves, not operating), but I guess that’s not applicable in your situation.

 

[DisneyMom2008]

Nice profit!

Curious, if you don't mind my asking. How much was your contract per point originally?

Thanks! I paid $142pp & sold for $170pp.

 

[DisneyMom2008]

Ahh, okay! I was going to say that you could cut down your tax liability with the dues (capital reserves, not operating), but I guess that’s not applicable in your situation.

I read that I can deduct the closing costs from both ends but not sure about it.

 

[Sandisw]

I read that I can deduct the closing costs from both ends but not sure about it.

Yes you can. I use TurboTax and if I remember correctly there is a prompt to add it no always choose walk me through everything even if I don’t think I need to just to be sure.

 

[WDWEPCOT]

Thank you for asking this !
I sold two and my job this weekend is to calculate my loss as I figure I had a loss - God forbid it was a gain as I don’t want to have to pay taxes on THAT !! Wish me luck !!

 

[DisneyMom2008]

Yes you can. I use TurboTax and if I remember correctly there is a prompt to add it no always choose walk me through everything even if I don’t think I need to just to be sure.

I am still stumped as to where I can add the closing costs, commission... Do you remember where to add the info? Thanks!

 

[DisneyMom2008]

Yes you can. I use TurboTax and if I remember correctly there is a prompt to add it no always choose walk me through everything even if I don’t think I need to just to be sure.

I believe I FINALLY figured it out!

 

[dvc lover 1970]

Nice profit!! At that price point it looks like it was either a small BCV contract or GF contract - either way congratulations

 

[DisneyMom2008]

Nice profit!! At that price point it looks like it was either a small BCV contract or GF contract - either way congratulations
Thanks! It was actually a Polynesian contract, 150 points.

 

[a742246]

I would double check your numbers concerning profit. You don’t want to overstate your profit to the irs. Example a 150point contract and you made a $28 point profit doesn’t add up to a 7,000 profit.

 

[DonMacGregor]

I would double check your numbers concerning profit. You don’t want to overstate your profit to the irs. Example a 150point contract and you made a $28 point profit doesn’t add up to a 7,000 profit.

I was just thinking the same thing. $7k profit at $28 PP would require 250 points. That's the simple equation, assuming the contract was originally purchased with cash (OP says it was financed), and no MF's paid in the second year (OP says no MF's in the first year only).