Where do I enter sale of my 2nd home?

The sale of a second home is entered in the Investment section.  You will need the Premier edition to report the sale.

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen.  Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose Second Home and continue with the section until it completes.

Where do I enter my expenses for the sale of the 2nd home or land? TurboTax does not ask any questions or have a section for any entries for them. TurboTax Deluxe

where do I enter my original purchase amount 

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@barryjfox1 wrote:

where do I enter my original purchase amount 

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To enter the sale of a Second Home -

 

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose the option Second home and continue with the section until it completes.

I need help in claiming the sale of my second home in 2019 with a capital loss

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@ken51 wrote:

I need help in claiming the sale of my second home in 2019 with a capital loss

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READ

the answer provided above your post.

Help

 

I received a 1099 S but no B

 

In TurboTax it has Net Proceeds.

 

Do I insert the total proceeds less cost I paid. For example if gross = 600 and I paid 500 do I enter 100?

 

Where do I enter costs such as commissions and special assessments ? Very confusing with TurboTax and it offers no helpful guidance so I hope the community can help. I have the Business and premiere. Thank you

To enter this transaction 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. Scroll down the screen until to come to the section “Investment Income”
4. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
5. 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)
6. Since you did not receive a 1099-B, answer “no” to the 1099-B question
7. Choose type of investment you sold - select Second Home
8. Some basic information:
   1. Description –  Usually the basic timeshare information
   2. Sales Proceeds – Net proceeds from the sale 
   3. Date Sold – Date you sold the property

I want to hear another statement from Tax expert regarding the sale of my second home in 2019.

I sold my second home in 2019 with a loss of $40,000 plus expenses including broker fees, closing fees.

This was no timeshare, nor any part of Airbnb. Can I claim as investment income for 2019?

Please answer asp. Your tax expert apparently told me during my tax return procedure that I 

could not deduct the loss of my investment on Federal return. I had to pay franchise tax for the state of 

California for the tax year 2015 for investment income as capital gain.

Where do I enter the sale of a second home, an inherited home, or land on my 2019 taxes?   There will be a place to enter your selling expenses.

 

When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.

• A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
• A capital loss is when you sell the asset for less than its cost basis. Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.

Your total capital gains for the year minus your total capital losses results in either a net capital gain or a net capital loss.

• Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
• Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
• Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.

Related Information:

• Where do I enter a capital gain or loss?
• How is a capital gain or loss calculated?
• What is the definition of cost basis?
• What is a capital loss carryover?

Deleted. Wrong subject for me.

 

This does not seem to work for me — at least doing my 2020 taxes in 2021.   I sold a vacation home (never a rental or income property).   I sold it for less than I paid for it, however, even though I typed in “Second Home” to identify what it was, it still calculates the loss for me and drastically changes my refund on both federal and state return.  I know the loss of your second (non-investment, non-rental property) home is not tax deductible, yet TurboTax does not ask me the questions to prevent it from calculating the loss on Schedule D.  Do I just have to enter a cost basis the same as the sale price reported on 1099-S from in order not to have a loss?   Even though the cost basis of course, is made up?   Makes no sense.

You are correct, the loss of your second (non-investment, non-rental property) home is not tax deductible, and the basis and the sale price are important in the calculation of your taxes.  With the sale of a second home, you will be responsible for paying taxes on any profits you make, at a rate of up to 20%, depending on your tax bracket.  You need to know the adjusted basis of the home, and it should be higher than what you paid for it.  Even though you sold your home at a loss, it appears that the software may be calculating a capital gain.  

 

According to the IRS, Your second residence (such as a vacation home) is considered a capital asset. Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets to report sales, exchanges, and other dispositions of capital assets. 

 

Here is an article about Schedule D and form 8949.

 

 

The sale of a second home would be recorded in the Investment section.  

 

 

To reach this screen type investment sales in the search box.  Then click Jump to investment sales and follow the prompts.

 

 

@Dianaboston

Thanks so much.. However, when I follow the instructions (Premier) I do not see a Jump To Investment Sales after I type Investment Sales in the search box....  Am I missing something here?  I just can't seem to get to the menu that asks me what I sold, etc.

In TurboTax Premier, type sale of a second home into the search box, and then Jump to sale of second home.

 

The software will then ask you if you sold any investments in 2020.   Let us know if you still experience trouble entering the basis information.  

Thanks Renee...  But, I do not get the Jump to link when I type "sale of a second home" in the search box.

I just get links to other information, and I never see any Jump to link in my Premier TT interface..  Am I doing something wrong?

 

The sale of second home is entered on sch D which is part of investments.

1. If you go into the Wages and Income section of your return,
2. scroll down to investment Income.
3. Select Stocks, Mutual, Other
4. Did you get a 1099-B, no
5. Tell us about this sale. 
6. Click on I'll enter one sale at a time, boxes drop down.
7. Box 1 description Second home
8. continue filling in the boxes.

 

Box 1d sale proceeds will match your 1099-S amount.

Box 1e cost basis (usually how much you paid) plus capital improvements plus selling expenses

 

@Dianaboston

Thanks so much!  I do have the information entered.. My problem was (and still is) the fact that I get no Jump To link when I use the Search feature “Sold Second Home”.......   Very strange that the software does not give me any Jump To links at all.  Using Premier on a Mac platform.   

You are correct, there isn't a "Jump to" link in TurboTax Online or Desktop programs for sale of a second home. Using the same Search feature, however,  will take you to TurboTax articles that tell you how to enter that transaction.

 

See:

I'm having the same issue as @Dianaboston - after answering No to whether I have a 1099-B, I don't get a menu of choices that includes "Second home". (Clearly this was a feature last year.)

 

I understand that I can follow your directions below, but I thought and hoped that Premier would guide me through the process of entering the right numbers for a second home sale specifically.

 

 

And yes, the problem is when you sell a second home (NOT an investment home that you rent out), any loss on that sale is not tax deductible.  However, because TT is not asking the proper questions about the sale (was it an investment property or just a second home for personal use), it automatically gives you a loss when you enter a cost basis that is more than what you sold the house for.  So, because my cost basis was more than what I sold it for, I had to enter a made up cost basis that was equal to the sale price, in order for the software to NOT generate this loss on the tax forms (which substantially increased my refund!). This is really not how the software should be behaving.  Is it?

I still have TurboTax 2019 (Deluxe), so I did a little experiment. Sure enough, answering "No" to the question "Did you get a 1099-B" brings up a screen where you are asked to "Choose the type of investment you sold". If you choose "Second Home", you are asked for things like the property address, how you acquired the home, etc.

 

If you've been reading the thread, you already know that this is not how TurboTax 2020 (Premier) behaves....

Wow, that’s really interesting.... And, obviously a problem with the 2020 Premium TurboTax.   There will be many people getting huge (illegal) deductions on the sale of their second (non-investment) home when sold at a loss.  Huge error in the software. 

I'm also intetested in this getting fixed as I am in the same position with a loss on the sale of a second home.  Will someone be making this issue visible before a lot of people end up with erroneous refunds?