topic Inherited vacation property sale in Investors & landlords

Inherited vacation property sale

Mom of Faith — Mon, 03 Feb 2020 17:52:47 GMT

Years ago my sister and I inherited a vacation home from our parents. We sold it last year. I normally file jointly with my husband. This year I'll be reporting the gain on the sale of the vacation home on our taxes. My question is should I continue to file jointly? My husband is on Medicare and I am concerned that this added income will affect his premium. Since the property was something I inherited it doesn't seem right that it would affect his premiums. Thank you!

Re: Inherited vacation property sale

Anonymous_ — Mon, 03 Feb 2020 17:59:49 GMT

@Mom of Faith wrote:

Since the property was something I inherited it doesn't seem right that it would affect his premiums.

The problem is there is a different chart (with tax brackets) for married individuals who live with their spouse but file a separate tax return.

See Page 6: https://www.ssa.gov/pubs/EN-05-10536.pdf

Re: Inherited vacation property sale

Carl — Mon, 03 Feb 2020 19:18:49 GMT

When a married couple files separate returns, they both *automatically* disqualify for a number of deductions and credits they would qualify for if filing joint. Additionally, more (if not all) of any social security income received becomes taxable income. So by filing separate what may be saved in premium payments will be offset by less deductions and credits, and higher taxes.

Re: How to report loss on sale of vacation home

old325 — Mon, 11 Oct 2021 19:35:22 GMT

I know the loss is nondectible but not sure what form(s) to use to report loss.

Re: How to report loss on sale of vacation home

Anonymous_ — Mon, 11 Oct 2021 19:45:49 GMT

@old325

The thread in which you have posted your question is over a year and a half old.

Please start a new thread to post your question.

Re: How to report loss on sale of vacation home

old325 — Mon, 11 Oct 2021 21:01:44 GMT

I have a loss on the sale of a vacation home--I know it is not deductible but I think it is still required to be reported. Can anyone advise?

Re: How to report loss on sale of vacation home

Anonymous_ — Mon, 11 Oct 2021 21:19:06 GMT

@old325

You are correct assuming the vacation home was used for personal purposes.

In that event, you cannot deduct a loss (or use a loss to offset any gains you might have). Report the sale the same as you would the sale of a stock or bond in that section of TurboTax.

Re: How to report loss on sale of vacation home

Mike9241 — Mon, 11 Oct 2021 23:49:40 GMT

if you didn't get a 1099-S, there is nothing to report if you did use form 1099-B and set cost equal to ales price so there is no gain or loss

Re: How to report loss on sale of vacation home

Anonymous_ — Tue, 12 Oct 2021 00:01:00 GMT

@Mike9241 wrote:

....use form 1099-B and set cost equal to ales price so there is no gain or loss

There is a selection in TurboTax to indicate that a loss is not deductible due to the property being held for personal use.