Our situation: We bought House A in 1997 and was our principle residence. We bought House B in 2008 because we outgrew House A. However, due to the housing collapse in 2008 we could not sell House A, but instead, turned it into a rental. House B was then our principle residence. In 2023 we downsized and moved out of House B and back into House A. House A became our principle residence in once again. House B was vacant in 2023-24 while we cleaned it out and prepared it for sale. In 2024 we sold House B.
Am I correct that House B is treated like a second home for tax purposes and the information entered under Investments in TurboTax premier?
Also, what improvements to the home count towards the Adjusted Basis? As opposed to repairs?
Thanks.
