If
you used this timeshare as a second home and you rented it less than 15 days during the
year, its primary function is not considered to be rental and the sale would not be reported as the sale of Rental Property.
Instead, report the sale under the Investment Income area of Wages & Income.
- Use the Search box in the TurboTax header and type in "sale of second home." Hit Enter, then use the jump-to link to go to the start of that section.
- Add an investment sale.
- Type of Investment: Second
Home
- Enter a description, Net
Proceeds and date of sale.
- Acquired: how this property
was acquired
- Cost Basis: original purchase
price plus closing costs
- Date of Acquisition: date you
purchased the property
TurboTax will
determine if you had a gain or a loss on this investment and determine if it
was short- or long-term. If you have other capital gains, a loss will offset
some or all of the gains. Otherwise, up to $3,000 of the capital loss will go
to line 13 of Form 1040 and offset other income. The remaining loss over $3,000
will be carried forward each year until used up (applied to capital gains
and/or ordinary income). If the sale resulted in a gain, it will be taxed as
capital gains.
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