All of your income is taxed by the state that you live in, no matter where the income is from. The state that the second home is in will also tax the income from the sale. In most cases, you will get a credit on your resident tax return for the tax that you pay to the other state, but there are some exceptions. If you tell us what state you live in and what state the second home is in, someone might be able to give you more details. Every state has different rules.
In the Personal Info section, did you answer Yes when TurboTax asked whether you made money in another state?
