Second home

[Sudshanks]

How do I report the sale of a second home

[tagteam]

Report the sale in the Investment Income section, the same as if you sold a stock or mutual fund. 

Note that if you sold at a loss, you cannot deduct that loss since the home was used for personal purposes. As a result, you will have to check a box on a subsequent screen if you sold at a loss.

Also note that if you used the home as a rental at any time during your period of ownership, you should report the sale in the Sale of Home section.

[Sudshanks]

I tried to report the sale in the investment section. It keeps asking me how many days I rented it. I enter zero days but program will not accept my answer. ?

[JoannaB2]

It depends.  If the sale of the second home was for personal use, it must be reported on the Sale of Home form of 1040.  On the other hand, the sale or exchange of capital asset will be reported on Schedule D. The Schedule D form is used to report capital gains or losses for investments.