IRS form 1099-S Proceeds from Real Estate Transactions may report:
- Your main home,
- A second home,
- A vacation home,
- Land,
- Residential rental property, or
- Real property recorded as a business asset.
The tax treatment of each of these transactions differ. Sale of a second home, an inherited home or land are considered investment sales.
In TurboTax Online Premium, follow these steps to report the sale:
- Click on the Search magnifying glass and enter sale of second home.
- Click on the Jump to sale of second home link.
- Click on Add investments.
- At the screen Let's import your tax info, click on Enter a different way.
- At the screen OK, let's start with one investment type, select Other and click Continue.
- At the screen Tell us more about this sale, enter the name. Click Continue.
- At the screen Now, enter one sale….., enter the information. Click Continue.
- At the screen Let us know if any of these situations apply to this sale, answer as appropriate. Click Continue.
The entry will be reported:
- on Schedule D of the Federal 1040 tax return, and
- on line 7 of the Federal 1040 tax return.
The gross proceeds used to pay off a loan securing another property would likely not be a taxable event. What was the nature of the other property?
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