Sale of 2nd home

[sw16]

We did the sale of a second home.  We did not use it as rental; my mom lived in it rent free.  Although it wasn’t a rental, should I list the sale of the home under business investment  as if it was a rental.?  I don’t see any other way to pay the taxes on the sale.

It is also asking about depreciation.  We only owned the property for about 4 years and sold for a profit.  I don’t understand if we are supposed to list something for depreciation?

[DavidD66]

No, do not treat as a rental. There should be no depreciation.  You will report the sale in the same section in which you report stock and other investment sales.  To Enter in TurboTax: 

• Type "Investment sales" in the search window and click Enter
• Click on "Jump to Investment sales"
• On the page with "Did you have investment sales in 2023?"  Answer Yes
• Answer No to "Did you cave crypto income or losses in 2023?" 
• Skip the import sections and click on Enter another way
• On the screen with OK, let's start with one investment type, click on "Other"
• Answer No to "Did you get a 1099-B..."
• Enter the name of the person or entity that brokered the sale (you can leave this blank)
• On the "Now enter one sale for [description]" Indicate "Second Home" and give a description like "Second Home".
• The interview will walk you through entering the details of the sale

[sw16]

Would that be the same as investment property?  I don’t see investment sales.

[sw16]

Would that be the same as investment property?  I see that but not investment sales.

[DianeW777]

Yes, it would be investment property and considered a sale of a second home.

 The second home sale can be entered into TurboTax Desktop version by following the steps below.

1. Open your TurboTax account > Wages & Income 
2. Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
3. Select Enter a different way > Select the type of sale - Other
4. Enter the details of the property sold - Select Second Home from the dropdown continue to enter your information
5. Continue to finish your sale.  
6. See the image below for assistance. 
7. TurboTax Online Search > type 1099b (you're not really entering a 1099b) > Jump to ... Link  > Scroll to Add investments 
8. Whether you specifically select Second Home is not relevant for the tax return itself.