Visitor I

Sold and purchased a second home

I have been on my fathers title of his home for over 20 years.  he died and the home is mine

 

i sold it to my daughter in 2017 for a good deal.

i purchased a second home in jan of 2018.  how do i report this 

1 Comment
Catalyst V

Sold and purchased a second home

Actually, before your dad passed each of you had 50% ownership in the home. But if he just added you to the title before he passed, and you are listed as JTWROS on the deed, then your cost basis is not the FMV of the home on the day your dad passed. It's the original price paid for the home, regardless of who paid for it. Since it was not your primary residence you'll report the sale under the Personal Income tab in the Investments section, sub-section Stocks, Bonds, Mutual Funds, Other.

 

The purchase of a 2nd home (as opposed to the purchase of rental property that you intend to rent out, and actually do rent out) is not a tax break really. You only get to claim property taxes and mortgage interest you pay every year on the property and that's pretty much it. As a 2nd home, the property insurance is not a deductible expense.

Now as a 2nd home, if you work it through the "your home" section there are very, very few sales expenses you will be able to claim in the tax year purchased. The program will walk you through those.