Your second home is considered a capital asset. Use Form 1040, Schedule D (PDF)to report sales, exchanges, and other dispositions of capital assets. If you have a qualified home office or rent your second home, see Publication 587, Business Use of Your Home, or Publication 527Residential Rental Property for more details on reporting the sale of your second residence.

References:

• Publication 527, Residential Rental Property
• Publication 544,Sales and Other Dispositions of Assets
• Publication 587, Business Use of Your Home
• Tax Topic 703, Basis of Assets
• Tax Topic 409, Capital Gains and Losses

Source: www.irs.gov