1. Second house, investment home, whatever you call it, it goes on Sch D. The 1099-S is your sales price. You acquired the home in 2018 and the basis is a little more complicated. Follow these steps:
- Father-in law purchase price of the house
- Plus capital improvements (add a room, driveway, etc)
- Plus any capital improvements by Daughter A
- Minus any depreciation claimed, rental, office
- any other required items to add or subtract*
- Divide by 4
*See Publication 551 (12/2022), Basis of Assets - IRS
2. Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?
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