I sold a second home that I inherited. I figured the cost basis from date of death and didn't make money based on that, but I did lose money because I had to renovate it

[Phillip1]

Inherited properties can be sold for a deductible capital loss as long as you did not use the property for personal purposes after you retained ownership.

You will report the sale in the same section where you report stock transactions. See the following instructions:

1. Go to the Federal Taxes category.
2. Go to the Wages and Income subcategory.
3. In the list of income items under the "Your Income" page, find the section labeled "Investment Income" and click Show more.
4. Click start or revisit on the line labeled Stocks, Mutual Funds, Bonds, Other.
5. Click yes, you did have a sale of an investment.
6. Answer no, you do not have a Form 1099-B Broker statement.
7. On the screen that asks " Choose the type of investment you sold" click on Everything else.
8. Enter the sales and basis information in the subsequent screens.
9. On the screen labeled "Loss on the Property" choose one of the options. Only the business or rental, or the investment option will allow a capital loss deduction.