I received 1099S for sale of vacation home (no gain). Settlement firm sent me copy of 1099S. Under the block on the right it says Copy A for IRS, file with Form 1096?

[richard's_tax]

Do I file the 1099S and 1096 or was that instruction for the settlement firm?   If I must file, how do I get Turbotax to generate 1096?

[Coleen3]

Those are the instructions for the person who sent you the form. SInce you received a 1099-S, you will need to include the sale on your 1040.

If this house was an second home sold with a capital gain -

To enter this transaction in TurboTax, log into your tax return  (for TurboTax Online sign-in, click Here ) and click on "Take me to my return") and type "investment income (gains and losses)" in the search bar then select "jump to investment income"

To enter this sale of a second home in TurboTax Online or Desktop, please follow these steps:ent income (gains and losses)". TurboTax will guide you in entering this information (see step 6 below)  

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. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
6. 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)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. Choose type of investment you sold - select Second Home
9. Some basic information:

1. Description –  Usually the address of the property sold
2. Sales Proceeds – Net proceeds from the sale  (select box to input selling expenses not reported on 1099-S)
3. Date Sold – Date you sold the property

1. Tell us how you acquired the property - purchased
2. Any business or rental use? - select personal use only (please note that capital losses are not allowed on personal use property) If you make another selection, you may need to report this sale under sale of business

[jehackler]

I tried these instructions and once i hit no on the 1099-B, I am not able to select another sale.  Also, the 1099-S form is not available for the sale of a second home.  I am using TurboTax Home and Business

[gloriah5200]

In the search bar of the return, enter "sale of second home" and then follow the "jump to" link to select "other-covers 1099-S" to enter the sale of an investment property (like second home).  You will have to remember to enter it as personal use property because a loss on the sale of personal property is not deductible.

It  may ask you the name of the brokerage company that managed the sale, leave it blank and continue.

Then when it asks for the type of investment sold, select second home from the dropdown and continue through the section.

You can enter this info in the investment section of TurboTax. Select the product you’re using for the right instructions.

Note: To report investment sales, you’ll have to use TurboTax Premier, TurboTax Self-Employed, or TurboTax Home & Business.

Related Information:

• Where do I enter Form 1099-S?
• Is the money I made from a home sale taxable?
• I sold my rental property. How do I report that?
• Where is Form 8949?

For additional information, please refer to the following link:

How to enter the sale of a second home

[Edited 03/11/2021|2:24 pm pst]

[jehackler]

Unfortunately the jump to links aren't working but I was able to get the information entered.  From what I have read, I can't take a loss on my vacation home but the loss on vacant land held for investment is allowed.  Thanks for the information you provided.

[Tiogi1347]

We sold our interest in Disney Vacation Club and received $12,508.17 , and a 1009-S form. How do I answer the question in TurboTax regarding Basis?

[ShirlynW]

In most situations, the basis of an asset is its cost to you. The cost is the amount you pay for it in cash, debt obligations, and other property or services. Cost includes sales tax and other expenses connected with the purchase. Click her for more information on how to determine your basis. Click here for more info on how to determine your cost basis of the Disney Vacation Club property. 

[Edited 01/31/22|5:05 pm PDT]

[CircuitMan]

I purchased Turbotax Premier and I am trying to enter the sale of a vacation home (mobile home).  I entered the 1099S Gross Proceeds as proceeds and a fair market value in the appropriate box.  However, where do I I enter commissions, capital improvements,  and other closing costs?  (The property was inherited in 2010 and sold in 2023.)

[AmyC]

The sale of a second home only has two entries, the sales and the basis. The basis is where you will have a sum of value when inherited + improvements + allowed sales expenses. When the box asks for inherited value, put your actual basis into the program instead.

[CircuitMan]

Thank you, for the prompt reply.  You are experienced with this and this is my first time.  I have been referencing Pub 523 and it just surprises me that the IRS would be satisfied with just these two entries.  Although the the differences from the two entries results in the proper gain figure.