This would be entered as the sale of a second home. The sale would be reported as the proceeds (price that the house was sold for) minus the basis in the house.
The basis is the price that you paid for the house in 2012 and any capital improvements that you made to the house from the extensive remodeling. You can add some expenses from the Settlement Statement to the basis of the house. These are title fees, real estate commissions, stamps, abstract cost, transfer taxes, home inspection and attorney fees.
From @Opus17 An improvement is something that extends the useful life of the asset or increases its value, in contrast to a repair which restores the asset to its previous value or condition. Improvements can include kitchen upgrades, new roof, new carpet, fixtures, and other things that become permanent parts of the property. (Not appliances, for instance.) The improvement must still be with the property when you sell; if you owned the house for 30 years and replaced the roof twice, only the second job adds to the value, the first does not since it was removed. Likewise carpets, windows, fixtures, etc.
Here are instructions to enter the sale:
- Open or continue your return
- In the search box, search for sold second home and select the Jump to link
- Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2021? screen
- If you land on the Your investment sales summary screen, select Add More Sales
- On the OK, let's start with one investment type screen, select Other, then Continue
- On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
- On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale
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