Yes, it is reported on the same form whether it is a main home or a second home. The exclusion on gains for main homes have a Code H. Although TurboTax would not code it with an H on a loss, just to avoid any possible confusion either with incorrectly claiming the exemption which can only be claimed on the main home or having the IRS see the loss entered as the sale of a main home (since the description would classify it as a main home) and therefore disallowing the exemption for the next two years, it is far better just to enter it in the investments section.
Code E appears when you have a selling statement that does not include selling expenses and those have been manually added in. It is just reporting that the adjusted cost you are reporting does not match what the Substitute 1099-S has reported.
To report that you did receive a brokerage statement:
- Go to Personal Income > Investment Income > Stocks, Mutual Funds, Bonds, Other and select Start/Update.
- Select Add More Sales
- Did you get a 1099-B or a brokerage statement? Answer Yes. Select My bank/brokerage isn't here. Enter the name of the Escrow firm that provided the substitute 1099-S.
- Enter one sale at a time.
- Enter the amounts as reported on the form without the sales expenses since they were not reported on the form. Select Sale Category of F if this is not a form this reported to the IRS (ie not an actual 1099-S).
- Select No, this is not employee stock.
- Under Select any less common adjustments that apply click the box next to Any loss from this sale is not deductible for reasons other than disallowed wash sale (personal use property, sale to related party, etc)
- Select This is personal use property (like a vacation home)
- Also select The reported sales price did not deduct all fees or selling expenses. Enter your selling expenses here.
After all is said and done, the 1099-B should have the name of your Escrow agent that provided the form. On Form 8949, the description should be the address of the property, the actual proceeds and cost listed on the form you received from escrow should appear in Boxes D and E. The codes in Box 5 should be E,L and Box G should have a -10,000 adjustment to adjust the proceeds to the cost so the amount of gain in Box H is 0.
Boxes D, E, G, and H will carry through to Part II of your Schedule D.
