TurboTax is not allowing me to report a capital loss on the sale of a second home I held as an investment. It is capped at $0. How can I report this loss in TurboTax?

[rjscls]

The help info states a loss is reportable for the sale of a second home held as an investment, and I have it reported in the investment income section.

[rjs · Accepted solution]

On the screen where you enter the information about the sale, where it asks "What type of investment did you sell?," do not select "Second home." Select "Land (other investment purpose."

[Mike9241]

 If you considered this your second home, then this will be considered a personal use property and you will not be able to claim a capital loss. If this property was bought to be used as a rental but was never rented, then you would be able to claim this as the sale of business property and claim the capital loss. you would not label it a second home. The issue I see is that a taxpayer could always claim that their primary residence was held as an investment. you're in a gray area.