capital gains exclusion

[jbowers53]

Where in TurboTax Premier do you claim the capital gains on the sale of a second home. We meet the requirements for the exclusion. I entered the sale of the second home under Investments, but where is the information to claim the exclusion? Should this be entered elsewhere?

Type of investment: Second Home

Receive the investment: I purchased it

Description: used the address

Received investment: 08/29/2008

Date sold: 07/22/2024

Proceeds (from 1099-S): sale price

Total amount paid: Is this the purchase price plus the cost of improvements, i.e., Adjusted Basis?

There is no where to enter the improvements except to include them in with the above. The 'Learn more' explanation only refers to 1099-B.

[DoninGA · Accepted solution]

There are no capital gain exclusions on the sale of a second home.

To enter an investment sale -

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, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), 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

[Hal_Al]

The capital gains exclusion is for your primary home only. 

[jbowers53]

We bought this home in 2008 and lived in this home as our primary residence until 2023. We sold the home in 2024. It was not bought as an investment. Should we enter the sale as our primary residence? 

[Hal_Al]

Q. Should we enter this as the sale as our primary residence? 

A. Yes. 

You meet the rule that it must have been your residence for at least two out of the five years prior to the sale.  That answer assumes you haven't sold another primary residence in the last two years. 

How was the property used since you moved out?  You still qualify for the capital gain exclusion, even if you used it as rental property, but you will have to do depreciation recapture, even if you didn't actually claim depreciation.