That depends. Was the land/home an investment property? If an investment property, then you could report the sale as a second home as follows:
- Open your TurboTax account > Wages & Income
- Scroll to Investment and Savings > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other > Start or Update
- Select the type of sale. If you have already entered investment sales, then select Add investments.
- Enter the details of the property sold - Select Second Home from the dropdown, and 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. Whether you specifically select Second Home is not relevant for the tax return itself.
If you are in a business, the purpose of which is to buy land, construct houses, and then sell houses for a profit, then the facts about the sale of this home (i.e., original cost, repairs and upgrades, sales proceeds) would be entered on a Schedule C, Profit or Loss From Business. This type of gain would be characterized as ordinary income.
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