Sold RV space in owner RV resort

[steelhead4me]

We live full time in RV. Our address is Oregon.  We spent over 6 months a year in AZ in the owner 'RV 'resort, Do we pay taxes on profit from sale?

[DanielleCPA]

Hi @steelhead4me!  

It sounds like the RV Resort space is not your primary residence, and therefore the gain on the sale will be taxable.

The exclusion of gain on sale of a home only applies to your primary residence.  Although you stayed there half the year, you say your address is in Oregon.  When you own more than one home, you use a "facts and circumstances" test to determine which is your primary residence.

See: IRS Pub 523 

Sale of your main home.

You may take the exclusion, whether maximum or partial, only on the sale of a home that is your principal residence, meaning your main home. An individual has only one main home at a time. If you own and live in just one home, then that property is your main home. If you own or live in more than one home, then you must apply a "facts and circumstances" test to determine which property is your main home. While the most important factor is where you spend the most time, other factors are relevant as well. They are listed below. The more of these factors that are true of a home, the more likely that it is your main home.

• The address listed on your:

  1. U.S. Postal Service address,

  2. Voter Registration Card,

  3. Federal and state tax returns, and

  4. Driver's license or car registration.

• The home is near:

  1. Where you work,

  2. Where you bank,

  3. The residence of one or more family members, and

  4. Recreational clubs or religious organizations of which you are a member.

Finally, the exclusion can apply to many different types of housing facilities. A single-family home, a condominium, a cooperative apartment, a mobile home, and a houseboat each may be a main home and therefore qualify for the exclusion.

You need TurboTax Premier to report the sale of a second home.

To report the sale :

1. Go into the Wages and Income section of your return,
2. Scroll down to Investment Income.
3. Select Stocks, Mutual, Other
4. Answer No to the question "Did you get a 1099-B"?
5. On the screen Tell us about this sale, Click on I'll enter one sale at a time, boxes drop down.
6. Enter Second home in the description box
7. Enter the amount reported on the 1099-S in as Sale proceeds.
8. Enter the cost basis (how much you paid for the property plus capital improvements plus selling expenses).

If you don't receive a 1099-S, you should be able to find the proceeds on your closing documents.