sale of second home 1099 S

[Terry bach]

I need help completing my 2021 taxes

I sold a second home I have had long term, it is not my primary residence

past 5 years was used by step son free

I have my initial cost basis at time of purchase 1997

1099 S has my gross proceeds

I have my seller statement.

I have receipts for improvements and additions which I want to use to increase my cost of home

where do I add the figures for my improvements to the cost basis (home purchase cost + improvement cost) the program is not very clear on this.

thank you.

[Mike9241]

since there is no home sale exclusion available and depreciation was neither required nor taken add the purchase price and cost of improvement and closing costs on the purchase. you selling expenses would those qualified expenses on the closing statement for sale.

gain would be long-term capital. loss would be non-deductible.

[Terry bach]

Thank you Mike.  That is what I thought but the program is not clear.  And I purchased the premier  for this purpose as I had issues last year with clarity on the basic program.

Terry

[Terry M1]

Also experiencing 'Sale of Second Home' reporting syndrome. Discovered how to get to 'Sale of Second Home' in Wages & Income bypassing the 'Did you receive a 1099B and enter under 'Description' Sale of Second Home'. Even so it is not clear to me that given I received a 1099S from the title company where I enter that information in Premier. I doesn't offer that form in 'Forms' to add into my paperwork. 

Would be most helpful if someone would explain why that form isn't available and howe to deal with that.

[PattiF]

There is no section in TurboTax to directly enter the information from the 1099-S. This is also the way that other tax programs are coded for other software including Ultra Tax and other tax software used by accounting firms. Form 1099-S is used to report the proceeds from the sale or exchange of real estate and certain royalty payments. This includes transactions that consist of sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in: Improved or unimproved land, including air space.

You will enter the information from the 1099-S and your information about the date of purchase and the cost basis of the home that you have from your records. 

Here is a TurboTax Help article with instructions for entering this into your tax return using the Desktop version of TurboTax.  Use the exact search term in the instructions.

In the Home & Business version of TurboTax Desktop, you would enter the 1099-S from the timber sale using these steps:

• Click on the Wages & Income tab
• Next click on I'll choose what I work on
• Scroll down the screen until you come to the section Investment Income
• Chose Stocks, Mutual Funds, Bonds, Other and select Start or Update
• The first screen will ask if you sold any investments during the year, answer
• Did you get a 1099-B or a brokerage statement for these sales? Answer No
• Tell us about this sale, Click I'll enter one sale at a time
• The drop-down boxes can be filled out with the details of the second home sale

1. Description - Second home, address
2. Date sold - on 1099-S
3. Date acquired - from your records
4. Sale proceeds - on 1099-S
5. Cost basis - initial purchase price plus expenses of the sale 

[Terry M1]

Great response! Worked just as noted. Information I input for sale of second home sale now populate a Form 8949 and Form 1099 B worksheets which show up in the Forms when I click on that in my return. Under Easy Step in the Investment Accounts we have so far this shows up as "No Financial Institution" and that has to be clicked on to get to the "Second Home Sale" input section - . Not sure why numbers are negative (and fairly large) in "Investment Income", 'Stocks, Mutual Funds . .  ' and 'Capital Loss Carryover' since it seems like to me I and my 2 partners made a profit on the sale.

[AmyC]

If you are showing negative income when you know you made money, go back and check your entries for sale proceeds and cost basis. It is easy to switch those numbers and have it backwards.