So...let's complicate this even further. I received a 1099-S. I see I can enter the sale of my second home in Investments section as a capital gain like any other "stock" transaction, but I can also enter the 1099-S in the "Less Common Income" section and "Sale of a home (gain or loss)" section at the end of the income transactions. I realize that this section is more for the sale of a first home, but it is the only section for entering a 1099-S.
The tax difference is huge!! If I treat it as an investment, and capital gain, I will owe $3,300 in taxes. If I enter the 1099-S in Sale of a Home, my taxes go from paying $3,300 to getting a refund of $3,300. It seems the difference is living in the house for 24 months during a five year period, which I did.
I need help! Can I enter the transaction as my 1099-S or do I have to enter it as an investment??
