Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
kellyjschoen1414
New Member

I have a 2nd home which i took a 64k loan to buy/flip another house. I sold that house for 129400. Question can i deduct the 64k-closing costs and rehab costs? Also where on turbo tax do i enter this

 
1 Reply
ThomasM125
Expert Alumni

I have a 2nd home which i took a 64k loan to buy/flip another house. I sold that house for 129400. Question can i deduct the 64k-closing costs and rehab costs? Also where on turbo tax do i enter this

You can deduct the cost of the home plus improvements you made to it. The loan payoff is of no consequence, the cost (basis) of the home is the purchase price plus improvements.

 

You will enter it in TurboTax as a sale of investment as follows:

 

1. Find the "Income and Expenses" menu option in your TurboTax program

2. Find "Investment Income" in the list of categories

3. Click on "Stocks, Mutual Funds, Bonds and Other"

4. Work through the program to find "Choose the type of Investment you Sold"

5. Choose the "Second Home" option in the list of investments

6. Enter the information requested about your sale (date purchased, sale amount, cost, etc)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v