Do I need to report the loss from the sale of a second home under Investment Income or is there no need to report it because it's a loss?

juneauspot · ‎May 14, 2021

The second home was a mobile home that depreciated.

ErnieS0 · ‎May 14, 2021

The IRS does not let you deduct a loss from the sale of a second home. But it's still reportable. The IRS says:

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.

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ErnieS0 · ‎May 14, 2021

The IRS does not let you deduct a loss from the sale of a second home. But it's still reportable. The IRS says:

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Do you have an Intuit account?