If i bought condo second home in 2013 in Kentucky ( i live in Tennessee ) and sold in 2017 with gain of $10,000 do i need to claim?

[CherylW · Accepted solution]

There are some rules that you have to try to apply to your condo.

This, from Topic Number 701 - Sale of Your Home:

First, you're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.

Second, you're not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

It doesn't sound like it was your main home, but if you did use it as your main home in prior years for 2 out of 5 years before selling it, you would qualify.

Otherwise, you would report it as a capital gain, choosing Second Home from the checklist when you enter the interview:

1.    Click Federal on the left-hand side menu.

2.    Click Income across the top.

3.    Scroll down to Investment Income and click Show more.

4.    Click Start or Revisit by Stocks, Mutual Funds, Bonds, Other.