This does not seem to work for me — at least doing my 2020 taxes in 2021. I sold a vacation home (never a rental or income property). I sold it for less than I paid for it, however, even though I typed in “Second Home” to identify what it was, it still calculates the loss for me and drastically changes my refund on both federal and state return. I know the loss of your second (non-investment, non-rental property) home is not tax deductible, yet TurboTax does not ask me the questions to prevent it from calculating the loss on Schedule D. Do I just have to enter a cost basis the same as the sale price reported on 1099-S from in order not to have a loss? Even though the cost basis of course, is made up? Makes no sense.
