Sale of Second Home - Capital Gain or Loss Reporting

[wathenpc]

I have a similar situation. I purchased a second home in 2021 but it needed too much work to rent or use it so i sold it in 2022 at a loss. I am using TurboTax Premier Desktop version and I received a 1099-S with the name of the attorney, description, date of sale and selling price.

In TurboTax I put it in as an investment as directed above.

I used the settlement statements from my purchase and my sale of it.

In TurboTax, I put it as a Short Term noncovered (Box B) as they only listed the selling price not the expenses of the sales as on the settlement statement. (Short term sales with cost basis not reported to the IRS).

I then added the fees and expenses from the settlement statement when checking the box, "The reported sales price did not deduct all fees or selling expenses.

Is everything correct on this?  TurboTax is putting an E on the 8949 form.  

Thanks

[ErnieS0]

Yes. it is correct. The amount of the adjustment is your expense of sale. Code E reflects the adjustment.

You can't use the net sales price because you need to match the price listed on Form 1099-S.

[syoung123]

I don't think you would check box B since the line says "reported on 1099B" and you have a 1099S.  You should check box C "not reported on 1099B" if it is short term.  Maybe an Intuit employee expert can confirm that.

[wathenpc]

The form actually says Substitute Form 1099-S Proceeds from Real Estate Transactions for the Tax Year 2022

[wathenpc]

How do I report this? as a 1099-B in investments? or list as not received a 1099-B since I received a 1099-S for the real estate sale. An attorney handled the sale and provided the 1099-S not a bank or financial institution.

It would be nice if TurboTax actually had this in the Premier edition as a question to answer.

Thanks

[syoung123]

You did not receive a "1099B", so I don't think box B is the correct box to check.  An employee expert can confirm what is correct.

[DaveF1006]

Yes, you are correct. You would report this in Box C, if short term or F if long-term. In fact, there is a question that is asked in the beginning of the interview asking if you received a 1099B for the sale, you would answer "no". 

Since wathenpc is using desktop software, the program will prompt to enter the information in the sale screen and then ask information about the sale of the house. At the end, there are only two choices for the holding period, C for short-term or F for long term. There is no Box B. This should be the screen that should appear in your Premier Desktop version. keep in mind, this screenshot is for illustrative purposes only.

@syoung123 @wathenpc 

[wathenpc]

Thanks. 1 more question.  In completing my taxes it is asking if I had a NOL.

I did but I think i need to answer NO,

I am on Social Security and no real other income.

[DaveF1006]

No. Based on your circumstances, you would not have a NOL to be concerned about. 

@wathenpc 

[TaxData]

Thank you for the info But I am not getting the option to enter the type of investment.

[minike]

I do not see those steps in my 2024 Turbotax Deluxe

elizabeth

[DoninGA]

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@minike wrote:

I do not see those steps in my 2024 Turbotax Deluxe

elizabeth

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To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Cryptocurrency, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

Using the desktop editions -

On the next screen click on Yes
On the next screen click on Skip import
On the next screen, select Other and continue

In the box for entering the type of investment that was sold, from the dropdown select Second Home 

(Assuming that is what was sold)