Deductions & credits
A second home is considered an investment for tax purposes, even if it was just for personal use and not rented. As an investment, any gain from the sale of the second home is considered a "capital gain" and taxed at those rates (which may be lower than if it were taxed as income). For this reason it is included in the Investment section of TurboTax
You can report the sale of a second home by using these steps:
- Open or continue your return in TurboTax.
- In the Search box, enter sold second home and select the Jump to link in the search results.
- Answer Yes on the Did you sell any investments in 2020? screen.
- Answer No on the “Did you get a 1099-B or a brokerage statement for these sales?” screen.
- The next screen is “Tell us about this sale”. Mark the radio button next to I’ll enter one sale at a time
- On the screen, Tell us about this sale, you can enter Second Home in the Description box.
- Enter the total sales proceeds as well as the other information requested. [See Screenshot #1, below.]
- Continue to the screen, Select any less common adjustments that apply. (In TurboTax Online: Let us know if any of these situations apply to this sale)
- Mark the first box The reported sales price did not deduct all fees or selling expenses. [Screenshot #2] (In TurboTax Online: I paid sales expenses that aren't included in the sale proceeds reported on the form.) [Screenshot #3]
- Enter the sales expenses not deducted from the sales price entered earlier.
SCREENSHOT #1
SCREENSHOT #2
SCREENSHOT #3
