sold second home that was homesteaded for son living there

[jlstirm]

I sold a second home in late November that was homesteaded for my son who lived there for 10 years.  He moved out so I had no need for it any longer.  Will I be subject to taxes as if it was an investment property?

[GiseleD]

Since you didn't live there two out of the last five years, this isn't a primary residence, and you aren't eligible to exclude gain under IRC Section 121. If you realized a gain on the sale, you will be taxed on this. 

If you rented this home to your son, you will report the sale in the Rental Properties and Royalties section of TurboTax. You may have to add the property as an asset first. 

If you didn't rent this to your son, you would enter the sale of a second home in the investment section of TurboTax. Here are the instructions:   

1. Open or continue your return in TurboTax.
2. In the search box, search for sold second home and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2019? screen.
   • If you land on the Here's the info we have for these investment sales screen, select Add More Sales.
4. Answer No to the 1099-B question.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale.