How record the sale of a second home? Have 1099-S form, per IRS its a substitute form.TT asks Did you get a 1099-B or a brokerage stmt for these sales? Can I answer Yes?

[Trekker1]

I'm using TT Premium edition and have a form 1099-S showing gross proceeds from the title company with no basis.  This is a LT gain.  Per IRS 8949 instructions - purpose of the form is to reconcile amounts reported to you and the IRS on FORMS 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.  In TT Under Investment Income/Stocks, Mutual Funds, Bonds, Other/Added More Sales/It asks Did you get a 1099-B or a brokerage statement for these sales?  Can I answer Yes, because the 1099-S is a substitute form?  Then when it asks what box can I choose E (Long term noncovered)?

[HelenC12]

See the instructions to properly enter the sale of your second home. 

Generally, property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.
 

To enter that sale of a second home in TurboTax Online:

1. Open or continue your return.
2. In the search box, search for sold second home and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
   • If you land on the Your investment sales summary screen, select Add More Sales.
4. On the OK, what type of investments did you sell? screen, select Other then Continue.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale.

To enter sale of a second home if you're using the CD\Download version, click on TurboTax CD/Download.

Related Information:

• Where do I enter Form 1099-S?
• Is the money I made from a home sale taxable?
• I sold my rental property. How do I report that?
• Where is Form 8949?

[Trekker1]

Why is the 1099-S form not considered a substitute form for the 1099-B?

If you say no to did you get a 1099-B or a brokerage statement for these sales then you have to choose box F , which is long-term transactions not reported to you, which is not correct, since the 1099-S will go to the IRS.

[ColeenD3]

You are trying to enter the house as if it were stock. It isn't. 1099-S is its own unique reporting form and has nothing to do with 1099-B.

Enter the sale as directed by HelenC12 and the reporting will be accurate.

[cher1945]

This does not work on my TT Premier.  I cannot get the "other" sales for second home.  All I get is the information for stocks, etc.  Not working properly.  Frustrated.

[ToddL99]

Sale of a second home is reported in the "Stocks Mutual Funds, Bonds and Other" interview of Investment Income; it is not treated any differently than other investment sales.

Here are the screens from the interview that are used to report sales of a "second home":

[cher1945]

Thank you, but this is what I get:

1. Did you sell any investments in 2020:  YES

2.  Did you get a 1099-B or brokerage statement: NO

3.  Tell us about sale.

     a.  Enter 1 at at time or

     b.  I"ll enter a summary for each sale

  If I chose, #1 - what I get is:

   Description, date sold, date acquired, sale proceeds, cost or basis, and 

   holding period.  If I continue, I get no choice for second home, etc.  

Seems like Premier is not working correctly on my end, seems like it acts as if this is a stock instead of second home.  

[cher1945]

wish i could post pictures to show you what i have on my screen

[JotikaT2]

You are actually in the correct section.  The downloaded software has a bit of a different display but you are entering it correctly.

Once you enter the information above, you will see subsequent screens where you will be able to enter additional information as needed.

The results of your input in the section above will be reported as a capital gain or loss on Schedule D as applicable.  

[cher1945]

thank you so much, finally!

[Trekker1]

In the CD version there is no second home option.  If you answer no to Did you get a 1099-B or a brokerage statement for these sales you get to the screen shots you are writing about.  But the option Long term (Box F) , which stands for Long-term transactions not reported to you on Form 1099-B, is not entirely true.  Since the 1099-S does get reported to the IRS its just not a 1099-B.

If you answer yes to Did you get a 1099-B or a brokerage statement etc. you get to fill-in the financial company and it's tax id number.  The rest of the screens are the same.  When you get to the screen that has the holding period you get an option E (Long term uncovered), which means the basis was not reported to the IRS, which is more accurate.

Both ways are going to get reported on the 8949 form.

Per IRS instruction for FORM 8949  it mentions 1099-B, 1099-S (or substitute statements).  Still not sure what the correct way is to record the second home.  Do you answer the question no, because you did not get a 1099B and ignore the IRS instructions that mention 1099-S and substitute statements?   

[ToddL99]

There is no special interview in TurboTax for Form 1099-S - it is entered in the Stocks, Mutual Funds, Bonds and Other interview of Investment Income and is not a Form 1099-B.

In the Stocks, Mutual Funds, Bonds and Other interview, answer "No" when asked "Did you get a 1099-B or other brokerage statement for these sale?"  Then, enter the second home sale information from the 1099-S.

In desktop versions of TurboTax, the screen looks like the following:

[cher1945]

Well there is not a place to enter the Real Estate Tax that is indicated on the 1099-S.  I don't understand why Turbo Tax does not have the correct screens to lead us "lay" people to where this needs to go, like they do when entering W-2's, SSA's, etc.  Certainly would be much simpler if they did.  I am entering my sale of second home as indicated above and hope the IRS can figure it out and doesn't give me a hard time about it.  Thank you.

[PattiF]

You would enter the real estate tax on the property tax section for itemized deductions. This will transfer to the Schedule A that lists the deductions.

It is confusing that there is not an entry for the 1099-S. Sales that are reported on a 1099-S include timber sales, house sales, and  land sales. Most tax software handles the form the same way as TurboTax. 

[cher1945]

Just to clarify, I am speaking of the 1099-S, box 6, you have "buyers part of real estate tax" on the sale of second home.  Where does this get entered?  So it's tax based on the sale not property taxes.  

Thank you.