Question

How record the sale of a second home? Have 1099-S form, per IRS its a substitute form.TT asks Did you get a 1099-B or a brokerage stmt for these sales? Can I answer Yes?

Forum|Forum|5 years ago
February 24, 2021
4 replies
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I'm using TT Premium edition and have a form 1099-S showing gross proceeds from the title company with no basis. This is a LT gain. Per IRS 8949 instructions - purpose of the form is to reconcile amounts reported to you and the IRS on FORMS 1099-B or 1099-S (or substitute statements) with the amounts you report on your return. In TT Under Investment Income/Stocks, Mutual Funds, Bonds, Other/Added More Sales/It asks Did you get a 1099-B or a brokerage statement for these sales? Can I answer Yes, because the 1099-S is a substitute form? Then when it asks what box can I choose E (Long term noncovered)?

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HelenC12

See the instructions to properly enter the sale of your second home.

Generally, property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.

To enter that sale of a second home in TurboTax Online:

Open or continue your return.
In the search box, search for sold second home and select the Jump to link in the search results.
Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
- If you land on the Your investment sales summary screen, select Add More Sales.
On the OK, what type of investments did you sell? screen, select Other then Continue.
On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale.

To enter sale of a second home if you're using the CD\Download version, click on TurboTax CD/Download.

Related Information:

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robjohnson9

Your instructions are totally wrong and don't work. No matter what I do I get sent to pages for entering a stock transaction. When you search as instructed you get 8 million results and links. If you click the first one it sends you to the same instructions from where you started. There is NO "Other" button which you reference so that is completely WRONG and so I can NOT get any further. TurboTax is a horrible product and will not be using it again and the support is ROTTEN.

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DianeW777

The second home sale can be entered into TurboTax CD or Desktop version by following the steps below. You do not use the Form 1099-S as an entry form.

Open your TurboTax account > Select the Personal tab then Personal Income > I'll choose what I want to work on
Scroll to Investment Income > Select Stocks, Mutual Funds, Bonds, Other > Start or Update
Add or Edit your sale that is NOT reported on a Form 1099-B > Select to enter a summary of each sale (you only have one)
Enter the Total Proceeds > Cost Basis (includes any capital improvements while you owned the property)
Enter the holding period - if you owned the property for more than one year the it is long term, one year or less is short term
Continue to finish your sale.

The gain from the sale will be fully taxable because a second home is not eligible for the home sale exclusion. See the image below for assistance. Whether you specifically select Second Home is not relevant for the tax return itself.

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Trekker1Author

Why is the 1099-S form not considered a substitute form for the 1099-B?

If you say no to did you get a 1099-B or a brokerage statement for these sales then you have to choose box F , which is long-term transactions not reported to you, which is not correct, since the 1099-S will go to the IRS.

ColeenD3

You are trying to enter the house as if it were stock. It isn't. 1099-S is its own unique reporting form and has nothing to do with 1099-B.

Enter the sale as directed by HelenC12 and the reporting will be accurate.

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kellcher

This does not work on my TT Premier. I cannot get the "other" sales for second home. All I get is the information for stocks, etc. Not working properly. Frustrated.

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gloriah5200

There is no special treatment of the sale of a second home except for it is subject to short term or long term capital gains treatment and sold on Form 8949 carrying to Sch D, as long as it was never a rental property.

There is no exclusion of gain for the sale of a second home as there is for the sale of a principal residence,

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NREVAL

is a 1099-S equal to 1099-B?