Where should I report gain on the sale of a house I built but never lived in?

Forum|Forum|3 years ago
March 7, 2023
3 replies
0 views

Where would I enter gain on the sale of a home that I built but never lived in or rented? The home was built and sold in less than a year. I bought the deluxe product and turbotax is offering the premier upgrade. Do I need to update my product?

Best answer by Anonymous_

The sale resulted in a gain.

@kdkj wrote:

The sale resulted in a gain.

Then you should still report the sale in the Investment Income section.

If you enter the sale in the Sale of Home section, you will be asked several (irrelevant) questions concerning whether or not you used the property as your primary home, for how long, etc.

Anonymous_

Employee

@kdkj wrote:

Do I need to update my product?

Yes, because you would need to enter this sale as if it were the sale of a stock, bond, or mutual fund in the program.

Mike9241

you would report the sale as if you sold a security. form 8949 type B - capital asset sale. your tax basis is your out-of-pocket costs. you can not add to your tax basis for the value on any of your personal labor

Carl11_2

Employee

You'll report it in the "Sale of Home (Gain or Loss) section. The fact you didn't live in it is fine. You just won't qualify for the capital gains tax exclusion, is all.

Note that since you owned the property for less than a year, you can expect to pay the higher, short term capital gains tax rate.

If you had rented the property out, my response would be different.

Anonymous_

Employee

@Carl11_2 wrote:

You'll report it in the "Sale of Home (Gain or Loss) section.

The sale should definitely not be reported in that section if there is a loss on the sale since the program will automatically flag the loss as not deductible.

The sale should be reported in the Investment Income section if the property had been held for investment.