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Returning Member
posted Jan 26, 2022 9:15:12 AM

Sale of a second home

We sold a second home without gain or loss, Is this a non-taxable sale?

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1 Replies
Expert Alumni
Jan 26, 2022 9:28:26 AM

Probably. 

 

If there is no gain, there would be no capital gains tax HOWEVER if the home was ever used as a rental, there would need to be "Depreciation Recapture" which would be taxed at your income tax rate. 

 

Enter the 1099-S into the TurboTax program. It will ask for the selling proceeds and your basis (the cost or value to you, usually the price you paid plus any improvements). 

If it was ever used as a rental (by you), the depreciation taken (or which could have been taken) will need to be reported. 

If there is no gain on the sale, and no depreciation to recapture, there will be no tax.