Sale of a second home is treated as a sale of an investment.
In TurboTax Desktop Premier, follow these step.
- Across the top of the screen, select Federal Taxes.
- Across the top of the screen, select Wages & Income.
- Select I'll choose what I work on.
- Scroll down to Investment Income and click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
- At the screen Let's finish pulling in your investment income, select Add investments.
- At the screen Let Us Enter Your Bank and Brokerage Tax Documents, select Skip Import.
- At the screen, OK let's start with one investment type, select Other, Land, Second homes, Personal items. 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 details of the sale.
By 'home improvements' do you mean that the original purchase price of the home was $200,000 but you spent another $40,000 to remodel the kitchen and $30,000 to remodel the bathroom? In such a case, the cost basis of the non-rental second home would be $270,000. In such a case, you may enter one entry for $270,000.
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