I don't have to report the sale of a second home that was previously a rental property if there was no gain correct?

[Lisa995]

The IRS doesn't know there was no gain until you've reported the sale on the tax return.  If a 1099-S was issued, its best to include it, otherwise IRS has only seen the sales price, and will expect that to be included on the tax return.

[Critter]

No ... you MUST report the sale no matter what the bottom line is because the IRS got the same 1099-S form from the closing company that you did and will expect the sale on the return.  And since it was a rental property at one point you must recapture the depreciation so you may have a gain after all. 

[Lisa995]

Ahh, I read past the part about being a previous rental.  Probably some previous depreciation that needs to be included in the transaction.