Sale of A Second Home
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New Member

Sale of A Second Home

On the sale of a Second Home can I use the Cost Basis on the purchase, or it that only allowed on the sale of a main home? 

6 Replies
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Level 15

Sale of A Second Home

For a sale of a second home you still use the Purchase Price plus the cost of any improvements for the Adjusted Basis.
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New Member

Sale of A Second Home

I don't think I asked the question correctly. When I originally purchased the property I had $2600.00 in closing costs. In looking at IRS Pub 521 it appeared that I could possibly use that amount to offset the purchase price. Or is it only expenses related directly to the sale?




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Level 15

Sale of A Second Home

The fees and closing costs you can add to the basis of the home are shown in IRS Publication 523 on page 8 - <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p523.pdf#page=8">https://www.irs.gov/pub/irs-pdf/p523.pdf#page=8</a>
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New Member

Sale of A Second Home

Where in TurboTax are the fees and closing costs entered and which version of TurboTax is recommended for a home sale?
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Level 15

Sale of A Second Home

A second home sale is entered as an investment sale, reported on a Schedule D and Form 8949.
Using the TurboTax online editions you would need the Premier edition to report the sale.
If you use the TurboTax CD/Download editions, then any of the desktop editions can be used.
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Level 15

Sale of A Second Home

fees and closing costs of your PURCHASE, long ago, are added to your cost basis by you.
Then enter the selling price (consideration).

fees and closing costs of your SALE, now, are Selling Expenses,and Turbotax will ask for your selling expense. TurboTax will make the adjustment on Form 8949.
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