Sale of second home - TurboTax Premier Download 2022

Forum|Forum|3 years ago
February 19, 2023
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UPDATE: I solved the problem, in a different kludgy way than others have. I called it a home sale of my primery residence - which allowed me to input the 1099-S, adjusted cost basis, and closing costs. And then when I got to the questions about whether we lived there for two years, I said No, No, No, did we sell another house and claim the exclusion, Yes. So I think it's been handled correctly now - as a home sale w/o the capital gains exclusion. (And since the 1099-S was reported to the IRS, it's better this way I think.)

So the whole reason I sprung for the Premier version this year is that I have a messy real estate transaction in 2022 to report. I sold a NYC co-op unit for which I cannot claim the capital gains exclusion (it wasn't my primary residence for 2 out of 5 years, and I just sold another house in 2023 for which I am claiming the exclusion). I have adjusted basis to report, because of extensive renovations. I had a lot of closing costs, including thousands of dollars that the co-op chose to charge me. And I had to prepay some capital gains taxes because NY State makes you do that.

I expected some kind of walk-through questionnaire that would help me sort all that out. Instead (from the advice I see in other Q&As here) I'm left with pretending it's just a stock investment without a 1099-B? That's crazy. I might as well do the forms for free by hand. What am I missing?

maglib

Employee

@Suzanne10023

The sale of a 2nd home is considered an investment property.

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
Choose type of investment you sold - select Second Home
Some basic information:
1. Description – Usually the address
2. Sales Proceeds – Net proceeds from the sale from the 1099 if received
3. Date Sold – Date you sold the property
4. Cost Basis (usually how much you paid) plus capital improvements plus selling expenses

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