topic Where should I enter qualifying capital improvements for a second home I sold in 2025? There is no reference to Form 8949, except that TurboTax will fill it out for me. in Deductions & credits

Where should I enter qualifying capital improvements for a second home I sold in 2025? There is no reference to Form 8949, except that TurboTax will fill it out for me.

crrenison — Tue, 03 Mar 2026 22:11:07 GMT

Under the Your Home tab, there is no reference to home sale or qualifying capital improvements. The income section has a place for closing costs and sales costs, but not for qualifying capital improvements we made during the 5 years we owned the home. I need to bring down our capital gains, but where in Turbotax do I put qualifying capital improvement costs?

Re: Where should I enter qualifying capital improvements for a second home I sold in 2025? There ...

Vanessa A — Tue, 03 Mar 2026 22:35:51 GMT

The capital improvements are added to the purchase price of the home and listed as the adjusted basis of the home. There is not a spot where you list improvements. Since this is a second home, you would list it in the investment section.

You will enter it by doing the following:

Federal
Income
Show More next to Investment Income
Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Select Other
Continue through and select second home for the type of investment
Answer how you obtained it
You will need to enter the selling price, dates and the cost basis (or adjusted basis) of the home

Re: Where should I enter qualifying capital improvements for a second home I sold in 2025? There ...

crrenison — Tue, 03 Mar 2026 22:55:18 GMT

Thank you, that is helpful. A note to TurboTax: When I follow the instructions for sale of a second home, and enter the details of the investment transaction, in the field for "Total Amount Paid", this is evidently the cost basis or the adjusted cost basis. This is vague in your presentation. When I open the question mark, it brings up a discussion about "What's Cost Basis and How is it Determined?" Below that are examples of every scenario EXCEPT Second Home Property Sold. It would be helpful for Turbo Tax to add this option to the list of situations, since you led me here but did not include how to itemize or include qualifying purchase costs or qualifying capital improvements WITH the purchase price (cost basis) to arrive at an adjusted cost basis for this field. Thanks for listening.