In 2013, my wife and I purchased land that had a mobile home (classified as "real property") and an additional 3 bedroom "permanent build" bunk house attachment. We are planning to sell the mobile home and replace it with build another "permanent build" house on the land. This entire property (land and houses) is a second home. Basis for the land and two houses was never individually determined, but I expect the sale of the mobile home component would be at a loss. Is this sale required to be reported? How will future sale of the entire property (land and 2 permanent houses), presumably at a gain, be handled regarding basis?
