Sold Second Home For Gain, Form 8949 Shows Loss

[doingmytaxes2]

In 2024 I sold a second home.  I entered the information from the 1099-S into the investments section of Turbo Tax. Using estimated numbers, proceeds were $1,000,000 and cost basis was $800,000 resulting in a gain of $200,000.

The investments section of Turbo Tax correctly shows the gain. However, when I look at my return form 8949 shows the value as -$200,000 in column G. This is a loss and results in no taxes due, which does not appear correct. Form 8949 does list codes EL in column F.

[rjs]

1. Obviously the "estimated numbers" are not the actual numbers.

2. If there is a code E you must have entered selling expenses, which you did not otherwise mention in your question. How much were the selling expenses? Did you enter anything else that you haven't mentioned?

3. You must have entered something different from what you said in your question. Could you possibly have reversed the proceeds and basis?

The solution is to go back and very carefully review all of your entries related to the sale.

[doingmytaxes2]

For this sale all I entered was the purchase price and the cost basis. I double, triple and quadruple checked and they are not reversed.

I entered selling costs related to primary home sale elsewhere, but I wouldn't think that would impact this.

[Mike9241]

review your entries. I realize you believe that was a gain. Turbotax should not allow a loss on a second home so there seems to be two issues. the allowance of the loss (did you specify second home and not investment) and the other a loss instead of a gain.  review form 8949 which is where the sale should appear. you may not be able to review it until you pay your Turbotax fees if you used online. 

[rjs · Accepted solution]

It seems like either something got mixed up between the sale of the primary home and the sale of the second home, or you got confused looking at Form 8949. I would think that the EL codes would go with the sale of your primary home, not the second home. Are both sales on the same Form 8949? Are the descriptions of the properties sufficiently clear, and sufficiently different, that you are certain of which one you are looking at?

Did you enter the sales in the Step-by-Step interview or in forms mode? Did you enter the sale of the primary home in the "Sale of Home" section and the sale of the second home in the "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other" section?

Forms mode can be complicated and error-prone. If you entered either sale in forms mode, I would suggest that you delete it and re-enter it in the Step-by-Step interview. If you can't find the problem, delete both sales completely and enter them all over again from scratch, being very careful to keep in mind which one you are entering. Make all the entries for one sale, then all the entries for the other sale. Don't jump back and forth between them.

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, that are included on the return.

[doingmytaxes2]

Deleting and re-entering fixed the issue.