Yes, improvements to a "second home" or personal use land are added to the basis of the property. When reporting the sale of this property, include the cost of the improvements in the "purchase price" of the property.
This activity is reported under Wages & Income >> Investment Income >> Stocks, Mutual Funds, Bonds, Other and included on Schedule D.
The easiest way to find this section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "investment sale", hit Enter, and click on "jump to investment sale" to go directly to beginning of this topic.
- Click Start/Update or "Add a Sale."
- Type of Investment: Choose the best category for your sale (second home or land)
- Enter a description, Net Proceeds (sales price less selling costs & commissions); date of sale.
- Acquired: whatever method fits
- Cost Basis: adjusted basis (orginal cost plus improvements)
- Date of Acquisition: purchase date
If this was used as a Rental Property, the sale would be reported under Wages & Income >> Rental Properties and Royalties. See "How Do I Enter The Sale of Rental Property?"
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