Hi @pjmac32 !
A second home is usually considered an investment. Here is an IRS reference:
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
If you're using TurboTax, here are the steps to enter the information:
https://ttlc.intuit.com/turbotax-support/en-us/help-article/real-property/enter-sale-second-home-inh...
Some of the closing costs, selling expenses, and improvements are considered as part of the basis and can reduce the capital gain. This IRS publication details what is included in basis: https://www.irs.gov/forms-pubs/about-publication-551
If you are a TurboTax user, you will be guided to answer questions and TurboTax will calculate your gain or loss based on your entries.
Hope this helps!
Cindy
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