Skip to main content
March 9, 2022
Question

Sale of second home at loss but not deductible. TT carries loss thru in error. What to do?

  • March 9, 2022
  • 1 reply
  • 0 views

I sold a second home in 2021 at a loss.  TT (Premier, desktop) carries the loss thru to my 1040 even though the IRS does not allow for deduction of losses from second homes.  What is the solution?  A "workaround" proposed by others is to just record the transaction as "breakeven", no gain/no loss.

    1 reply

    March 9, 2022

    "workaround" proposed by others is to just record the transaction as "breakeven", no gain/no loss.

     

     

    that's a good solution as any  or you can show loss and then use code L to adjust loss to zero