Hal_Al
Level 15

Deductions & credits

You don't need to report the sale of a 2nd home, that you sold for a loss; unless you received a form 1099-S**.

 

Although you have to claim (declare) a capital gain on the sale of your 2nd home, you are NOT allowed to claim a loss on the sale of  personal use property (e.g. 2nd home).

 

But, if your received a form 1099-S, the IRS will be expecting it to be reported on your tax return.  In TurboTax (TT) type> 1099-s, sale of property other than main home <in the find box. Then click "jump to". TT will report the sale, but disallow the loss, on form 8949, with a code L adjustment.

 

**Form 1099-S is usually included in your closing documents. Unlike other tax forms, it is not usually sent to you the following January.