We sold a second home last year but rolled the net proceeds into a new second home. We rent the new enough days to qualify as a rental. Any tax advantage for last year?

[kfir44]

The sold property closed on 6/21/16. The new property was closed a month later.

[MichaelL1 · Accepted solution]

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.