Second Home purchase and sold in same year

Forum|Forum|1 year ago
December 15, 2024
1 reply
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I own my home and some rental properties. In 2024 I purchased a second home and then sold it to my daughter for the same price I purchased it. I did incur cost to do this. Can/should I include this home purchase on my schedule E as a rental home purchase then sold? Can I include the expense as an income reduction to my rents?

Not A Product Question

rjs

Employee

How is it a rental home? Did you ever rent it to anyone or advertise it as available to rent? The fact that you own some rental properties does not mean that any home you purchase is a rental. The fact that you call it a second home also indicates that it was never a rental or intended as a rental.

TomD8

Employee

And since it was never a rental property you cannot deduct those expenses on Schedule E. Your only allowable deductions would be mortgage interest and property tax, each of which you would have to take on Schedule A.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.