Motorhome

[mpbp]

We traded-in our 2011 motorhome in 2021 for a 2021 model. Do we include the "sale" of our motorhome in wages? It is listed as "a 2nd home" in the popup? I tried to enter the information but I don't know where to find all the information it is asking for. 

[jth47]

Motor homes are titled with a VIN, so they are treated the same as automobiles.  Since selling an automobile is not considered as income, it follows that the sale of a motor home would not be income, taxable or otherwise. 

[JulieS]

No, you don't need to report the sale of your motorhome, unless it was a gain. 

A motorhome is a personal use vehicle, so if the sale results in a gain, you are supposed to report the sale. 

If the sale results in a loss, it is not deductible and does not need to be reported. 

If you need to report the sale because it resulted in a gain, this is how to do it:

1. Select the Federal tab toward the upper left corner.
2. Select Wages and Income.
3. Click I'll choose what I work on, on the right.
4. Scroll down to Investment Income.
5. Expand if needed and select Stocks, Mutual Funds, Bonds, Other.
6. Click Add account.
7. On the screen titled, Did you get a 1099-B for these sales? select No.
8. On the next screen select, I'll enter one sale at a time.
9. For description enter Motorhome.
10. For Date sold and Sales proceeds, enter the information from your records.
11. For Date acquired enter the date you bought the motorhome.
12. For Cost basis, enter the amount you paid for the motorhome plus any major improvements you made while you owned it
13. Click Continue.
14. On the screen titled, Any of these less common items for this sale? you shouldn't need to enter anything.
15. Click Done.
16. On the next screen select, Any loss from this sale is not deductible for reasons other than wash sale.
17. Select This is a personal use property.
18. Click Continue. 
19. Select No, if you don't have any other sales. 

[mpbp]

Thank you for your speedy reply. According to TurboTax, a motorhome is listed as a 2nd home. Do I disregard that?

[ThomasM125]

It is technically a second home if it has a kitchen, bathroom and bedroom. However, the sale of a second home is not taxable and you don't need to enter it on your tax return if sold at a loss. So, you don't need to be concerned about the designation in TurboTax.