Tax question related to purchase of 2nd home

[Carpediem]

We sold our rental condo in 2023 and bought a second home in another state with the proceeds. We are not renting out the second home. We only use it when we visit our family. (Of course, we're paying a large capital gain tax on the sale of the condo since we're now out of the rental business.)

Does the purchase of this second non-rental home get reported on our tax return? If so, what form is used?

I use TurboTax but I haven't been able to find any information or guidance on this topic.

 

[MichaelB]

We sold our rental condo in 2023 and bought a second home in another state with the proceeds. We are not renting out the second home. We only use it when we visit our family. (Of course, we're paying a large capital gain tax on the sale of the condo since we're now out of the rental business.)

Does the purchase of this second non-rental home get reported on our tax return? If so, what form is used?

I use TurboTax but I haven't been able to find any information or guidance on this topic.

No need to report a second home when you buy. You may need to report when you sell, and then only if you have a taxable gain.

 

[RE2Boys]

If you obtained a mortgage on the second home, interest paid is deductible as it is on a primary home. Same goes for property taxes that you made have paid at the closing to the seller.

 

[jebmke]

We sold our rental condo in 2023 and bought a second home in another state with the proceeds. We are not renting out the second home. We only use it when we visit our family. (Of course, we're paying a large capital gain tax on the sale of the condo since we're now out of the rental business.)

Does the purchase of this second non-rental home get reported on our tax return? If so, what form is used?

I use TurboTax but I haven't been able to find any information or guidance on this topic.

No reporting when you buy. If you sell with a gain or are issued a 1099-S after the sale you would likely need to report it [there may be exceptions but I can't think of them at the moment other than if the gain is minimal and you have no need to file otherwise.]

 

[Carpediem]

Thank you all! (Fyi, no mortgage on the 2nd home but thanks for the reminder of interest paid.)

 

[pb4uski]

No need to report a second home when you buy. You may need to report when you sell, and then only if you have a taxable gain.

+1 Just like there is no reporting when you buy your first home either.

 

[PaunchyPirate]

Also, when you sell, there is no capital gain exemption like there is when you sell your primary home. It is basically the same as selling a stock when it comes time to report the gains on a tax form. In fact, unless they changed it, TurboTax includes that reporting in the same screens used to report a stock/investment sale.