The sale of a second home is reported in TurboTax as a sale of investment property and can be entered by using the steps below. It is not considered a home sale and you would use cost basis to reduce the selling price and arrive at the gain. If you held the second home for more than one year (one year plus one day) then you will receive capital gain treatment on the gain.
The second home sale can be entered into TurboTax CD or Desktop version by following the steps below. (See the third image)
- Open your TurboTax account > Wages & Income
- Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
- Select No for 1099-B > Continue
- Enter the details of the property sold - Enter Second Home (TurboTax CD/Download) or select from the dropdown (TurboTax Online) continue to enter your information
- Continue to finish your sale.
The gain from the sale will be fully taxable because a second home is not eligible for the home sale exclusion. See the image below for assistance. Whether you specifically select Second Home is not relevant for the tax return itself.
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