I sold a home for what was owed, no profit made. Is this tax deductable? If so, what form do I use?

[Coleen3 · Accepted solution]

First, the gain or loss on a sale is determined by sales price minus purchase price. Other items can be taken into consideration such as improvements, sales expenses, etc that can be added to the basis. This is the only way to determine it there was a loss. If it was a rental home, you will have to recapture depreciation, that is subtract that amount from basis to determine gain.

If the home was your personal primary home, the loss is not deductible. This rule applies to the sale of a primary home/second home/inherited home that was a personal use property.

Click this link for further information about reporting the sale of a capital asset

If you still need to enter your sale of your primary residence please follow these steps:

1. Once you are in your tax return (for TurboTax Online sign-in, click Here), click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose “Sale of Home (gain or loss)” and select “start’
6. You will want to use the "Easy Guide" to determine the adjusted basis on this home 

Say "yes" that you sold your main home and TurboTax will guide you on entering this information.  You will need:

• The date you sold your home and the selling price (from your closing statement)
• The date you bought your home and the purchase price (from your purchase closing statement)
• The cost of any major improvements you made

If this house was an second home sold with a capital gain -

To enter this transaction 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:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
6. 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)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. Choose type of investment you sold - select Second Home

It depends on your rental activity during the year:

• Under the rental section - if rented during 2017
• Under the sale of business property - if not rented during 2017.

In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:

• Your adjusted tax basis in the property (both at the time of the conversion and the time of the sale)
• The sale price
• The fair market value of the property when it was converted to rental property

If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property.

[meimack1]

i purchase premier turbo tax for sold  second homes. under investment. I answer No under do not receive a1099-b  but there is no option let me select second home

[BillM223]

Are you following these instructions in this TurboTax Help article for the sale of a second home? I don't see a reference to 1099-B here.

Tell us at which step you see a deviation from the instructions.