Where do I enter sale of my 2nd home?

[carl066]

I've been using TurboTax Deluxe for many years. There were times when I sold a second home. This year, TurboTax Deluxe allows data for the sale of a primary residence but not a secondary residence. I can do so by using TurboTax Premier. However, I have already paid for and are working on my return using TurboTax Deluxe. I need to upgrade and transferring data already entered without buying the new version and starting over.

Thanks. 

[JotikaT2]

If you are using the online version of the software, you will be able to update your version and just pay the difference.

How to upgrade your version of TurboTax online

If you have a downloaded version of the software, please contact us with the link below for assistance.

Contact TurboTax

@carl066

[solwriter1]

I have Personal and Business TT. Where do I decare sale of a SECOND home?

[DawnC]

The sale of a 2nd home is entered in the Investments section.   @solwriter1   Choose your platform below to see instructions.  

TurboTax Online

TurboTax CD/Download

[billcal77]

Hi DianeW777.

I sold a rental property for a gain that I owned for many years in March 2020.   The tenant moved out and stopped paying rent on November 30, 2019 and I put it on the market for sale on December 1, 2019.   How do I enter the sale into Turbo Tax?   I see three options and none of them seem to work.   First, in reading through this thread, TT 2020 does not ask the necessary questions to provide for depreciation recapture, so I cannot enter it as a sale of a second home.

Second, I cannot enter it as a Sale of Certain Business Property since according to TT’s On Demand Tax Guidance box for Sale of Business Property, it must be an installment sale to enter it there, stated as follows:

Sale of Certain Business Property

What business sales do I report here?

You can have business property sales from a variety of sources, such as:

 - Sale of land, mineral property, or inventory
 - Recapture of a previously taken section 179 deduction
 - Non-recaptured section 1231 losses
 - Profit from the sale or trade of property you held for investment (like-kind exchange)
 - Sales of stock, real estate, autos or anything else for which you receive payments in two or more tax years (installment sale).

Third, I cannot enter it as a sale of a rental property.   When I indicated that “I sold or disposed of this property in 2020” and responded on the following screen “No, this property was not rented all year” and “I did not rent, or attempt to rent this property at all in 2020” I received the message “Since the property was not a rental at all in 2020, you should delete it as a rental.”

I am at a loss where or how to enter this transaction……please help.

Thank you.

[DanielV01]

You do want to follow the instructions in this Help Article:  I sold my rental property. How do I report that?  This will be in the Rental Section.  When you come across that check box "I did not rent, or attempt to rent this property at all in 2020", don't check it.  Instead, enter 0 everywhere in the income sections.  This will let you continue with the interview until you reach the screen "Review your rental property information" as the Help Article mentions.  

Once you get there, you will look for the following portion of the screen as described in the Help Article, click on start, and you will be able to follow remaining prompts to get the sale with the depreciation recapture properly reported.: 

[lindawalker57]

Sorry but that does not work for me.  I only get the opportunity to enter stock type sales, not the sale of a second home (for which there is a 1099-S)

[AmyC]

Yes, the sale goes to the same form as stock sales. Enter the information there. 

Description - sale of second home

The sales price should match the 1099-S you received.

The cost basis is what you paid, plus improvements plus expenses of sale.

Holding period would be long term if for more than 1 year.

@lindawalker57

[rjhseven]

I had $1,000 of AGI so my gain on sale of second home is non taxable-but Turbo Tax is reducing my capital loss carry forward by the amount of the gain ($32K). This isn't correct is it? I'm a retired CPA and if sale results in non-taxable capital gain, should it penalize you for gain by reducing capital loss carry forward? Thanks for any help

[MP84057]

I have a similar question. My mother recently passed away and I had bought a home with her she and I were both on the title as tenants in common (not joint tenants) and so I had to get probate in order to sell them house. When the house sold for 560K I gave my brother half of the proceeds of the sales, less all selling costs. So the title company wired him 233K and I got 233K. The title company is send me the 1099 for the full sale price and said I could report that he got 233K of the proceeds, where would I do that?

[MP84057]

I have a similar question. My mother recently passed away and I had bought a home with her she and I were both on the title as tenants in common (not joint tenants) and so I had to get probate in order to sell them house. When the house sold for 560K I gave my brother half of the proceeds of the sales, less all selling costs. So the title company wired him 233K and I got 233K. The title company is send me the 1099 for the full sale price and said I could report that he got 233K of the proceeds, where would I do that? Also, I'm using TT Home and Business.  Thanks in advance

[Mike9241]

sorry for your loss. in order to tell you who reports what, there's additional information we need to know. as tenants in common you owned an unknown % (TIC may not be 50/50 ownership) and your mother owned the rest. so what % did you own? did you live in the house or were you merely on the title.

since it went through probate, her estate owned her share. the court then determined who were the heirs to her share.  so who were they and in what %s? was the estate terminated by distributing out her share to the beneficiaries before it was sold or was it sold by the estate?   if sold by the estate and the proceeds distributed then the beneficiaries would report the gain based on what the court determined were the respective shares (gain would likely be small due to stepped-up basis if sold soon after her death). all this would need to be reported through the estate which would file a first and final 1041 and issue a k-1 to the beneficiaries. you would report the sale of the share you owned directly on your 1040.

I'm thinking that it's most likely that the house was sold by you and the estate rather than the situation where her share of the house had passed out of the estate to the beneficiaries so the sale would have been by you and the beneficiaries  - not reported on the 1041 for the estate.

the 1099-S being solely in your name can cause issues since the IRS will be looking for the $560K to be reported on your 1040. you may want to use a pro to do your tax return for the year.  a1041 may need to be filed and possibly even a gift tax return by you.

[DaveF1006]

Yes, you can report this by:

1. Click on Federal Taxes (Personal using Home and Business)
2. Click on Wages and Income (Personal Income using Home and Business)
3. Click on I'll choose what I work on (if shown)
4. Scroll down to Less Common Income.
5. On Sale of Home (gain or loss), click the start or update button.

When it asks for the sales proceeds, make sure you indicate it was for $233,000. Also when it asks what the basis of the house was, which includes what you purchased the house, improvements that were made, or costs that incurred when you bought the house, cut that amount in 1/2.

Your brother will need to report this on his income tax return in the same manner described above.

[MP84057]

Thanks for your condense, with respect to the percentage ownership, I bought it with my mother and we went in 50/50. I lived there for 4 years before I got married and then bought my own house. I was on the title as a tenant in common and not a joint tenant and so had to get probate in order to be able to sign the closing documents myself since I was appointed the representative of the estate. Her will said that every should be split 50/50 with my brother so when we closed and signed the documents at the title company they wired half of the proceeds to me and half to my brother. I called them again today and they said that the 1099 S would be sent to me but that I should report that half of the proceeds were sent to my brother. 

[MP84057]

Thanks for your condense, with respect to the percentage ownership, I bought it with my mother and we went in 50/50. I lived there for 4 years before I got married and then bought my own house. I was on the title as a tenant in common and not a joint tenant and so had to get probate in order to be able to sign the closing documents myself since I was appointed the representative of the estate. Her will said that every should be split 50/50 with my brother so when we closed and signed the documents at the title company they wired half of the proceeds to me and half to my brother. I called them again today and they said that the 1099 S would be sent to me but that I should report that half of the proceeds were sent to my brother.