2020 Software not set up properly for 1099-S (Sale of a Second Home)

[jpbenson68]

There is another discussion thread on 1099-s here that does not match the 2020 software (this thread says updated 1 month ago as of the writing of this question): 

https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-the-sale-of-a-second-home...

On step 5, "Tell Us More About this Sale" screen, the software provides no place to enter person or institution who brokered the sale.

On step 6, there is no option to select a second home.

The 2020 software seems to be set up for stocks, bonds, etc and not for the sale of a second home.  It does not provide the proper options and doesn't go into permanent improvements that would offset the capital gains.

[DoninGA · Accepted solution]

This has been reported and is being worked on to provide options for selecting different types of sales in the Investment Income section of the program.  Do not yet have a date when this will be fixed.  Updates are normally provided every Thursday during tax season.

This is the screenshot from TurboTax for 2019 that should be available in the 2020 desktop editions.

[jpbenson68]

Thank you.  This should be fixed asap...not once a week.  It's time to file and the software simply won't work for filing taxes for those that the 1099-S applies.  It's not a new thing, nor were there any tax changes in this regard in this area so this is difficult to understand how this occurred or why it can't be corrected sooner being that I'm currently on "hold" waiting for the correction now that I have all my forms.  May need to try something else unfortunately.

[JamesG1]

In TurboTax Self Employed, I am able to report a sale of second home as outlined in this TurboTax Help.

I am able to generate the screens Tell Us More About This Sale and Now we’ll walk you through entering your sale details. 

At the second screen, Second home is an option under the drop box What type of investment did you sell?.

Have you tried deleting the entry and starting over?

[jpbenson68]

Yes, I've deleted it several times.  Today there was an update.  It's still the same.  I'm even upgraded to the premium version to see if it's any different...it's not.  You can get to the "Tell Us More About This Sale" but then after answering "no" the 1099-B question, it takes you into the next screen (whereby in the help instructions it says you are able to enter the brokerage and there is no place to do so) and then when I entered data to get to the next screen, does not offer the option to mark it a sale of a second home (which in the help instructions also says it should be there.)  When you then switch to the forms view after entering the information, nowhere does it show that you were filing on behalf of a 1099-S (which makes sense because you're never asked if you received one to complete the data for a sale of a second home.)   The section is set up for sale of mutual funds, stocks, and bonds but not a 1099-S for sale of a second home.  I've reported it several times and they have neither responded or fixed the problem.  Surprising since there will be a lot of 1099-S forms generated with the low interest rate environment and all the sales that have taken place.

[jpbenson68]

There was an update installed today...it still isn't fixed.  Where did you discover that this has been reported and that they are working on it?  

[AmyC]

The sale goes on the sch D. When you click no to the 1099-B, it will go to a screen that says, Tell us about this sale. Click on I'll enter one sale at a time. Enter description, second home. Then enter the rest of the information. Remember to add improvements to your basis. You don't need to wait to enter the same information going to the same place unless you want to wait.

[jpbenson68]

When you switch over to forms the software doesn’t indicate a 1099-S. I would think the IRS will want to know what form the information is being derived? 

[AmyC]

The sales price should match the 1099-S exactly. You should only be adjusting the basis. The IRS does not open until February 12 so there is still plenty of time. The IRS is working through forms and we are incorporating as they do. The schedule D is done, just not some of the worksheets like this. Only the forms go to the IRS, not the worksheets.

[jpbenson68]

I entered the information as you stated.  Something doesn't seem right...I made a small profit off the sale of the second home which the profit was offset by the expenses paid (commissions) and TurboTax is claiming some of that loss in 2020 and a partial carryover of that loss in 2020.  This was a second home.  My understanding is that a loss cannot be claimed for a second home??

[jpbenson68]

A response to my last inquiry about the loss being claimed on my taxes has been resolved.  I called this morning and talked with a very helpful rep who said "I taught him something too".  Bottom line:  Turbotax did not do any justice in helping its customers with the 1099-S form for the purpose of selling a second home.  In the past, it has provided a very helpful wizard to walk through and then taken care of the background details.  Not this year.  It was moved to the Investments area where stocks, bonds, and mutual funds are heavily catered toward (even substantially in the "help" area).  The process in now bifurcated as well.  For example, I took an overall loss on the sale of the second home.  The old wizard used know, based on first the availability of a selection of a 1099-S form (which is missing) that it was for a sale of a second home (also missing) so the software claimed my loss.  While there is an option to make a checkmark by the list of later options provided not to claim the loss, the customer would have to know first that the loss could not be claimed for a second home...if they didn't they would leave that and receive an inflated return amount.  This type of situation was taken care of previously in the background when the customer would identify that it was a 1099-S with an option for the sale of a second home.  This (of all years) to be handled this way in a year of record-low interest rates where homes have been selling.  This has nothing to do with the worksheets...that happens every year when the IRS has not finalized on their side.  This has to do with the software and the wizard that used to exist to take care of the customer's need to file their taxes properly who shouldn't have to know these important tax details and then have to make the appropriate selections in order to have their taxes filed correctly.  It was good before...why break something that was working just fine?  The person who was very helpful on the phone today understood the shortcoming.  After all, as identified above by anther member, the self-employed version retained the old method.   This needs to be fixed and I hope this helps someone else after I have spent literally hours on the phone with Turbotax reps and "escalated" reps trying to figure this out this year and get this resolved.

[AmyC]

You are correct -- the loss on the sale of second home is not deductible since the property was for personal use and not business. I did not realize the button would be so difficult and will mark my notes. Thanks for the update!

[jpbenson68]

Really Amy?  You clearly didn't get the point.  The button wasn't difficult.  What was "difficult" was that you're expecting your customer to know taxes...and thankfully in this area I am aware having had sold a separate second home before.  If someone didn't know, then this would have been submitted incorrectly and the refund would have been inflated.  This is what TurboTax is for and the prior wizard that was available for this type of situation asked the correct questions (just like your help menu indicates to select "second home" for which was changed this year and not an option to select as well as not an option to select 1099-S either.)  Not professional of you to make that kind of remark as being "difficult" to check a box...some people may not know they should check that box.   After all, isn't that what TurboTax is for is to understand and apply the correct taxes based on responses instead of people having to know tax rules to know which boxes to check?  Working in Human Resources for 33 years, I'd be having a chat with you about your response/performance.  Yes, please mark your notes.

[Gregt-77]

Does anyone know if this has been fixed?  I've tried weekly and it still doesn't work for me. 

[JeanneLO]

This has been resolved you may need to do a manual update if you are using TurboTax Desktop. If you are using TurboTax online please delete the section and then re-enter the information.

@Gregt-77