Where on my tax return do I enter the cost basis of a real estate investment?

by David A. Caplan, CPA | Jul 27, 2018

I received the proceeds of a real estate investment on a 1099 in 2017. The amount was $80,000. However, I don't see how to enter the cost basis of $76,000. So, right now, the tax return has an extra $80,000 of income on it. Where do I enter the cost basis?

A real estate investment (as you term it), which would be different from the sale of a principal residence, is a capital asset. Any gain or loss would be reported on Schedule D (and possibly Form 8949), just like the sale of any other capital asset such as stocks or mutual funds. There is a column on the form for cost basis.

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Answered by: David A. Caplan, CPA, is a sole practitioner in Lafayette Hill, Pa.

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