And yes, the problem is when you sell a second home (NOT an investment home that you rent out), any loss on that sale is not tax deductible. However, because TT is not asking the proper questions about the sale (was it an investment property or just a second home for personal use), it automatically gives you a loss when you enter a cost basis that is more than what you sold the house for. So, because my cost basis was more than what I sold it for, I had to enter a made up cost basis that was equal to the sale price, in order for the software to NOT generate this loss on the tax forms (which substantially increased my refund!). This is really not how the software should be behaving. Is it?
