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Sale of second home

Forum|Forum|4 years ago
April 10, 2022
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I’m trying to report the sale of our second home; I’ve followed the instructions to add it as another asset sale; our cost basis is higher than the sale price, which of course is a loss. I’m never asked whether the property was rented (it wasn’t) and I understand the loss on a personally used 2nd home is not deductible. However, as I continue, the software appears to give credit for the loss as a capital loss carried forward to 2022. Am I doing something wrong?

Best answer by rjs

After you enter the basic information about the sale (dates, proceeds, basis, etc.), a few screens later you will come to a screen that says "Select any less common adjustments that apply." On that screen, check the box that says "Any loss from this sale is not deductible for reasons other than disallowed wash sale," and then select "This is personal use property." See the screen shot below.

rjsAnswer

Employee

After you enter the basic information about the sale (dates, proceeds, basis, etc.), a few screens later you will come to a screen that says "Select any less common adjustments that apply." On that screen, check the box that says "Any loss from this sale is not deductible for reasons other than disallowed wash sale," and then select "This is personal use property." See the screen shot below.