Submitted By: Bob
Answered: February 10, 2017 9:00 am

Where do I report the sale of a vacation home that I’ve owned for years?

A vacation home is a capital asset. As such, gain is reported on Schedule D (after entering the transaction on Form 8949 in the space for long-term transactions not reported on Form 1099-B). If the sale resulted in a loss, you may not deduct it because a loss on the sale of personal-use property is not deductible. You do not have to report the loss transaction on Form 8949 or Schedule D unless you received a Form 1099-S for it; in that case, you must enter an adjustment on Form 8949/Schedule D to indicate the loss is not deductible.

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Tax Glossary

Estimated tax

Advance payment of current tax liability based either on wage withholdings or installment payments of your estimated tax liability. To avoid penalties, you generally must pay to the IRS either 90% of your final tax liability, or either 100% or 110% of the prior year’s tax liability, depending on your adjusted gross income.

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