I input the proceeds from the sale of the second home along with the total adjustments regarding the capital improvements into the total amount paid. Do I need to explain (show evidence) of each capital improvement and the amount paid for each improvement? If so, how do I put that in TurboTax and get it on the 8949. If I add the capital improvements to the purchase price (which I did), it won't match the 1099-B, which your program says it should match. Will it create an issue with the IRS?
I don't see where TurboTax allows me to annotate each capital improvement and the amount of the adjustment. I attempted to annotate the 8949, but had to use the override feature, which indicates an error on the form and restricts me from submitting electronically. So I redid the form and I'm back to the beginning regarding this capital gain.
