First, the sale of the 2nd home, unless this was a structured transaction through a real estate intermediary, the sale of the 2nd home needs to be reported and any gain in taxable income.
The sale gets reported as follows:
To
enter your 2nd home sold
Click
on Federal Taxes
Click
on Wages and Income
Click
on I'll choose what I work on
Scroll
down to Investments
On
Stocks, Bonds, Other, click the start or update button
Now for the now home purchased that is rented sometimes. This is going to depend on if it rented at fair market value and the number of days it rented versus the days it was not available to be rented. More detail is needed to fully answer that.
It can be set up as Rental, and then go through the profile input and TurboTax will determine if any rental loss can be taken or not. The cost of the new property will have nothing to do with the sale of the first property.
