A loss on the sale of a personal residence, not used as a rental or in a business, is not deductible on a federal tax return. You must report the sale (gain or loss) if you received a Form 1099-S
To report the sale of the second home -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Under Investment Income
- On Stocks, Mutual Funds, Bonds, Other, click the start or update button
Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales
On the next screen, click Yes
On the next screen, click No
On the next screen, choose Second Home and continue with the section until it completes.
