I have a client that withdrew from her IRA in order to pay for home improvements in order to sell the house. What tax forms do I use to deduct the costs?
She did buy another home. She withdrew well over $100,000 from her IRA. She has a detailed account of what was done to make the house sellable plus to cover the closing costs. She did not receive a 1099-S because the sale price was below the exclusion amount. Where can I take the home improvements costs and the closing costs deductions that consumed all of the money she withdrew from her IRA so that it doesn't look like she has over $100,000 of "income" from her IRA distribution?