It depends.
Yes but only if you have a gain on the
sale (personal capital losses are not allowed on your tax return by the IRS)
and only if this was not your primary residence (where you would be able to
claim the home gain exclusion).
So if your mobile home cost more than you sold it for,
you will not have to report this sale on your federal or state income taxes.
If you have a gain and you are not taking the home
gain exclusion, you will report this as the sale of a second home. You would need to report this sale on both your federal and WI (resident state) income tax returns.
You do not need to
enter the sale of your primary residence if:
- You never used your primary
residence as a rental
- You have a loss on the sale
of your home (Personal capital losses are not reported on your tax return)
- You did not receive a Form
1099-S and
- You meet the home gain
exclusion (see below)
You can take
the gain exclusion as long as you considered the home your "primary
residence" for 2 of the last 5 years. If you have a capital gain from
the sale of your main home, you may qualify to exclude up to $250,000 of that
gain from your income. You may qualify to exclude up to $500,000 of that gain
if you file a joint return with your spouse. See Sale of Your Home for more
information on the exclusion.
To enter this transaction as the sale of a second home in TurboTax, log into your
tax return (for TurboTax Online sign-in, click Here ) and click on "Take me to my return") and
type "investment income (gains and losses)" in the search bar then
select "jump to investment income (gains and losses)". TurboTax will
guide you in entering this information (see step 6 below)
Alternatively, to
enter this sale of a second home in TurboTax Online or Desktop, please follow
these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on” (jump to full list)
- Scroll down the screen until
to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
sale of real property held as an investment property so answer “yes” to
this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose type of investment you
sold - select Second Home
- Some basic information:
- Description –
Usually the address of the property sold
- Sales Proceeds – Net
proceeds from the sale (select box to input selling expenses not
reported on 1099-S)
- Date Sold – Date you sold
the property
- Tell us how you acquired the
property - purchased
- Any business or rental use? -
select personal use only (please note that capital losses are not allowed
on personal use property) If you make another selection, you may need to
report this sale under sale of business
- Some Basis information
- Date Acquired
- Original cost basis
- Cost of improvements
Click this link
for further information about reporting
the sale of a capital asset
