No. Travel expenses is not considered an improvement or as a capital expense. (you could deduct travel expenses, maintenance, etc., if it was a rental.) It is not included in the basis of the property.
However, you can deduct mortgage interest and property taxes on the second home as you can with your primary residence.
You can increase your cost basis by the purchase (and sales) expenses and those would be:
- Real estate commissions
- Transfer tax
- Legal fees
- Advertising fees
- Home inspection reports
- Title insurance
- Geological surveys
- Loan charges (points) or other fees paid on the buyer's behave.
Sales expenses do not include:
- Mortgage payoffs
- Home equity loan payoffs
- Rent-back costs
- Payoff to creditors
- Property taxes
- Home owner association fees
Since this is not your main residence, the sale of your vacation property is considered a sale of investment property.
Enter Sale of your Second Home, Inherited property or Land here:
- Open your return (if not already open).
- Enter "sold second home" in the Search box.
- Click on "jump to sold second home" link.
- Proceed through the program screens... entering your information.
TurboTax FAQ: Where do I enter the sale of a second home, an inherited home, or land on my 2024 taxes?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
