Where do I enter sale of my 2nd home?

[DianeW777]

Yes, that is the correct action.  Your brother should report half of the sale as well.

You can choose to nominee half of the 1099-S proceeds to your brother which would show the correct amount for each of you for IRS purposes.

Nominee returns. 

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096-Transmittal 
• Form 1099S 2021

This will allow you to enter only half of the gross proceeds on your return.

[Aslechter]

How do I report the sale of a second home. It"s not covered in he TTAX deluxe. do I need premier TTAX?

[MayaD]

If you are using the Online version of TurboTax, you need to upgrade to TurboTax Premier to enter the sale of your second home. 

To report the sale :

• Select Federal Taxes tab,
• Go to Wages & Income 
• scroll down to Investment Income 
• Select Stocks, Mutual Funds, Bonds, Other.
• Respond "yes" to Did you sell any investments? 
• Answer No to the question Did you get a 1099-B or brokerage statement? 
• On the screen,  OK, what type of investments did you sell? mark the Other box and click Continue.
• When you get to the screen, Now we’ll walk you through entering your sale details enter the details of the sale.  You will be able to select the type of investment in the first box [second home, Land, etc.] 
• Enter the requested information and click Continue when done.

For the cost basis of the property, add the cost of the improvements to what you paid for the property.

[flemins]

TurboTax asks "who brokered the sale"   Is that the issuer of the 1099-S Form?  

[TeresaM]

Yes, the issuer of the 1099-S form would be perfect.

[mrydv1]

I sold a 2nd home in 2021 which we lived in for 2 of the 5 years we had it. I did receive a 1099-S

Can I use the deluxe version to record this? I have tried but it does not give me the option that we did occupy for 2 years.

[RaifH]

If the home is your second home, it would not qualify for the exclusion of gain. Only your main home qualifies for the exclusion, and you can only have one main home at a time. To report the sale of a second home in TurboTax, it is entered as a capital gain, which would require Premier:

1. Select Start/Revisit in the Federal > Wages and Income > Investment Income > Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
2. Under OK, let's start with one investment type, select Other.
3. Enter the information as it appears on the 1099-S. Use the drop-down menu to select Second home as investment type. 
4. If you paid sales expenses not included on the 1099-S, you may enter those on the next screen under Let us know if any of these situations apply to this sale.

If the home qualifies as a main home and you meet the other ownership and use requirements, it qualifies for the exclusion of up to $250,000 of gain or $500,000 if you are married filing jointly. If there is no gain after the exclusion, you can use TurboTax Deluxe to report this in the Federal > Wages and Income > Less Common Income > Sale of Home (gain or loss) section. 

@mrydv1

[ha-diane79]

I don't have the form 1099-S yet.  But on the settlement statement it list County Taxes amounts.  Can I write off these as selling expenses?

Thanks,

Diane

[DianeW777]

It depends.  It sounds like that may be property taxes which are only deductible as an itemized deduction on Schedule A.  However if they are transfer taxes then they would be considered a selling expense. The following items can be included in selling expenses (not all inclusive):

• Real estate commissions
• Transfer tax
• Legal fees
• Advertising fees
• Home inspection reports
• Title insurance
• Geological surveys
• Loan charges (points) or other fees paid on the buyer's behalf

Sales expenses do not include:

•  Mortgage payoffs
•  Home equity loan payoffs
•  Rent-back costs
•  Payoff to creditors
•  Property taxes
•  Home owner association fees

@ha-diane79

[Jim2022A]

No choice for second home. Wants me to enter stock information only. I have TurboTax Premier. Is this not the right one for this entry?

[JillS56]

Yes, the sale of the investment property (such as a second home) should be entered the same as stock sales are entered.  The acquisition date is the date you purchased the property.  The sale date is the date of the sale.   Proceeds are the gross sale price and the cost is the purchase price of the property plus improvements to the property and closing costs.  It would be classified as long-term.  

[ha-diane79]

I sold the 2nd home in IL but I lived and worked in CA.

The sale is a loss.  Do I need to file IL state tax (Form IL 1040)?

[ErnieS0]

No. But in some cases it's a good thing to do @ha-diane79.

Illinois says you don't have to file a return unless you earned enough taxable income from Illinois sources to have a tax liability.

Who must file an Illinois tax return?

With the sale of a home, real estate agents sometimes send Form 1099-S to the IRS and states. The form only shows how much the home was sold for, not whether you made any money. IL might think you made a profit.

Filing a form will tell them ahead of time the home was sold for a loss.

[Dicknap1137]

Re: Where do I enter my deductions for the sale of the 2nd home...I paid for to update Turbo Tax to Premier but it seems that I am still on TT Deluxe

[PattiF]

You will need to enter this in the investment section of TurboTax.  The deductions for the sale of the second home will be added to the cost basis. 

The basis is the price that you paid for the house and any capital improvements that you made to the house. You can add some expenses from the Settlement Statement to the basis of the house. These are title fees, real estate commissions, stamps, abstract costs, transfer taxes, home inspection, and attorney fees.

When you sell stocks, bonds, mutual funds, or other securities, you should get Form 1099-B from your brokerage by mid-February. Simply enter the form into TurboTax to report the sale.

But what about non-security investment sales like coins, collectibles, timber, land, or a second home? Here's how you enter those:

1. Open (continue) your return in TurboTax.
2. Answer Yes to the question Did you sell any of these investments in 2021?
   • If you land on the investment sales summary screen, select Add More Sales.
3. Select Other then Continue.
4. On the next screen, select the type of sale you had (like second home, collectible, or land) and Continue.
5. Open (continue) your return in TurboTax.
6. Continue following the onscreen instructions to enter the sale
7. You will enter the sale price and then the cost basis of the second home.

@Dicknap1137