Entering home improvements which change basis on sale of non-rental second home

TE29 — Thu, 13 Feb 2025 00:13:25 GMT

Where in Turbo tax premier is this done?

Re: Entering home improvements which change basis on sale of non-rental second home

JamesG1 — Thu, 13 Feb 2025 00:55:06 GMT

Sale of a second home is treated as a sale of an investment.

In TurboTax Desktop Premier, follow these step.

Across the top of the screen, select Federal Taxes.
Across the top of the screen, select Wages & Income.
Select I'll choose what I work on.
Scroll down to Investment Income and click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
At the screen Let's finish pulling in your investment income, select Add investments.
At the screen Let Us Enter Your Bank and Brokerage Tax Documents, select Skip Import.
At the screen, OK let's start with one investment type, select Other, Land, Second homes, Personal items. Click Continue.
At the screen Tell us more about this sale, enter the name. Click Continue.
At the screen Now, enter one sale, enter the details of the sale.

By 'home improvements' do you mean that the original purchase price of the home was $200,000 but you spent another $40,000 to remodel the kitchen and $30,000 to remodel the bathroom? In such a case, the cost basis of the non-rental second home would be $270,000. In such a case, you may enter one entry for $270,000.

topic Entering home improvements which change basis on sale of non-rental second home in Deductions & credits

Entering home improvements which change basis on sale of non-rental second home

Re: Entering home improvements which change basis on sale of non-rental second home