You would report the sale of your boat in the year you sold it, however, if this is personal-use property, losses from the sale of personal–use property, such as your home, car, boat, or timeshare are not deductible. It is not eligible for the capital gains loss of up to $3,000 annually. For more information, see About Publication 523, Selling Your Home.. However, you have to pay taxes on any gain.
For tax purposes, the
sale of a "second home" is treated as the sale of an investment, whether you made
any money or not. TurboTax Premier will help you
enter the sales information.
A vacation home can be categorized in one of three different
ways: personal, rental, and dual purpose (mixed use). It all depends on the
number of days used by the owner (or related parties) and the number of days
rented.
The categories that determine the tax treatment of a property's
income and deductions are:
- Entirely
personal--property used as a home and rented fewer than 14 days in the taxable
year.
- Entirely
rental--property rented more than 14 days a year; owner's personal use does not
exceed 14 days or 10 percent of the rental days, whichever is greater.
- Dual
purpose--mix of personal and rental; property is rented for more than 14 days
and personal use exceeds 14 days a year or 10 percent of total rental days,
whichever is greater.
These are entered in the investment
section of TurboTax. Follow these instructions:
- Open
your return in TurboTax.
-
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
- In
the search box, search for sold
second home (use this exact phrase) and then click the
"Jump to" link in the search results.
- Answer Yes on
the Did You Sell
Any Investments in 2016? screen.
- If
you land on the Here's
the investment sales info we have so far screen, click Add
More Sales.
- Answer No to the
1099-B question.
- On
the next screen, select Second
Home (choose this also for inherited homes) or Land. Click Continue.
- Follow
the on-screen instructions to completion.
Related
Information:
