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

[AmyC]

1. Go to income section 
2. click on Add More Income
3. scroll down to Investment Income
4. Show more
5. Stocks, Mutual Funds, Bonds, Other
6. Start:  Continue answering the questions.
   1. Yes,
   2. 1099-B - no,
   3. one sale at a time and the boxes appear for your entries.
   4. Click on I'll enter one sale at a time, boxes drop down.
   5. Box 1 description Second home
   6. continue filling in the boxes.

Box 1d sale proceeds will match your 1099-S amount.

Box 1e cost basis = how much you paid plus capital improvements plus selling expenses

Date acquired: purchase date

Holding period: Long term if more than one year

@LedZapplin

[Hope5011]

I am doing 2022 for 2021 on turbo tax Desktop. I have a 1099-S fo sale of 2nd home. It is difficult to enter plus would I be better off with Capital Gains, which I can nofind on Turbo Tax. Right now it is entered as income. I dont think this is correct. Help!

[DianeW777]

The sale of a second home is reported in TurboTax as a sale of investment property and can be entered by using the steps below.  It is not considered a home sale and you would use cost basis to reduce the selling price and arrive at the gain.  If you held the second home for more than one year (one year plus one day) then you will receive capital gain treatment on the gain.

The second home sale can be entered into TurboTax CD or Desktop version by following the steps below. (See the third image)

1. Open your TurboTax account > Wages & Income 
2. Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
3. Select No for 1099-B > Continue 
4. Enter the details of the property sold - Enter Second Home (TurboTax CD/Download) or select from the dropdown (TurboTax Online) continue to enter your information
5. Continue to finish your sale.  

The gain from the sale will be fully taxable because a second home is not eligible for the home sale exclusion. See the image below for assistance. Whether you specifically select Second Home is not relevant for the tax return itself.

[Hope5011]

Can I deduct all expenses for the sale of"2nd home" such as Commissions paid, payoff of mort loans?etc?

[DoninGA]

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@Hope5011 wrote:

Can I deduct all expenses for the sale of"2nd home" such as Commissions paid, payoff of mort loans?etc?

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Sales expenses are realtor commissions, legal fees, advertising fees, mortgage points or other loan charges you paid that would normally have been the buyer's responsibility.  There is no tax deduction for transfer taxes, stamp taxes, or other taxes, fees, and charges you paid when you sold your home. However, if you paid these amounts as the seller, you can treat these taxes and fees as selling expenses.

The mortgage loan payoff is not a sales expense nor is it used anywhere when reporting the gain or loss on the sale.

[Rose_B]

Hello, I was wondering if you can help me too. I am having a difficult time trying to figure out how to input the sale of our second home in TurboTax 2021 Premier. Thank you for the detail above. My question, how do we enter the information when we have two 1099-S forms. We sold our family home (owned by 3 sisters) to one sister.  How do we enter expense's related to the sale of the house? The 2 sisters 'selling' paid for all the expenses associated with the sale. How do we enter the renovations and improvement to the house through the years we owned it? Do we split it into 2 or 3? Thank you so much for your help.

[LeonardS]

Could you please clarify who received the 1099-Ss from the sale of your family home?  

@Rose_B

[Rose_B]

both my sister and I received a 'certification RE information reporting on sale/exchange of property- 1099 Information Sheet'.
The sale price was $300,000.

number of 1099-s forms required:2

if 2 1099-s forms are required for this transaction, record the amount for this seller based on the seller's declaration: $150,000.

thank you.

[Hope5011]

I called Turbo Tax and was guided to input sale of 2nd home in the investments section. You have to write in 2nd home. Use 1st tab: stocks ,funds,other. Then use Other. and proceed.