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corny7
New Member

Is the sale of a mobile home used as a vacation home for three months a year and the lot was not owned considered a second home sale and as an investment?

 
1 Reply
MichaelDC
New Member

Is the sale of a mobile home used as a vacation home for three months a year and the lot was not owned considered a second home sale and as an investment?

It would be considered a second home sale. Since it was personal use property, you can't claim a loss on the sale and do not have to report it. This is very similar to buying and selling your personal car or truck. You would, however, need to report a gain on the sale (not likely depending on the age of the mobile home).

If this house was a 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

9.     Some basic information:

1.     Description –  Usually the address of the property sold

2.     Sales Proceeds – Net proceeds from the sale  (select box to input selling expenses not reported on 1099-S)

3.     Date Sold – Date you sold the property

10.  Tell us how you acquired the property - purchased

11.  Any business or rental use? - select personal use only (please note that capital losses are not allowed on personal use property) If you make another selection, you may need to report this sale under sale of business

12.  Some Basis information

1.     Date Acquired

2.     Original cost basis

3.     Cost of improvements

 

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