TurboTax is not allowing me to report a capital loss on the sale of a second home I held as an investment. It is capped at $0. How can I report this loss in TurboTax?

Forum|Forum|1 year ago
February 23, 2025
2 replies
0 views

The help info states a loss is reportable for the sale of a second home held as an investment, and I have it reported in the investment income section.

Best answer by rjs

On the screen where you enter the information about the sale, where it asks "What type of investment did you sell?," do not select "Second home." Select "Land (other investment purpose."

rjsAnswer

Employee

On the screen where you enter the information about the sale, where it asks "What type of investment did you sell?," do not select "Second home." Select "Land (other investment purpose."

Mike9241

If you considered this your second home, then this will be considered a personal use property and you will not be able to claim a capital loss. If this property was bought to be used as a rental but was never rented, then you would be able to claim this as the sale of business property and claim the capital loss. you would not label it a second home. The issue I see is that a taxpayer could always claim that their primary residence was held as an investment. you're in a gray area.