I have always used Home & Business (CD). This year, I need to file a 1099-S for the sale of inherited land. TT says I need to use Premier instead. Will Premier handle my business?

[MSgal]

I have already purchased Home & Business (CD), installed it & updated it.  Now, I find "You’ll have to use TurboTax Premium to report the sale of a second home, an inherited home, or land."  My sister and are are co-owners of inherited land that we sold in 2022.  

[PattiF]

You can report the 1099-S for the inherited land sale using Home and Business. You do not need to use Premier which is an Online Program. 

Here are the instructions to enter the sale of the inherited land that was reported on the 1099-S.

To enter the 1099-S in TurboTax Online:

Click on Federal > Wages & Income

1. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2022?  Click the Yes box.
3. On the Did you get a 1099-B or a brokerage statement for these sales? screen, Select No.
4. On the Tell us about this sale screen, select I’ll enter one sale at a time, and enter Inherited land in the Description box
5. Enter the requested information and click Continue when done

• Description -  general location or address
• Date sold -1099-S
• Date acquired - from your records
• Sale proceeds - 2099-S
• Cost basis - FMV plus expenses of the sale

You will need to determine the cost basis for the land.

If the sale was within a short time after the death of the person who had owned the land, then use the sales price as the FMV for the cost basis.  If there was a time gap you may need to do a little research to find the cost basis.  You can always use the tax assessors' figures which tend to be a bit on the lower side ( thus creating taxable profit for the inheritors ) or get a realtor familiar with the neighborhood to give you an estimate.

Please see this from the IRS about inherited property where they discuss your basis in the property at the beginning of the answer.

[JAE94]

I also use TT Home & Business but I use the Windows desktop version. How do I enter information for a 1099-S that I received due to the sale of my parents home - I was the executor of my parents estate .

[DianeW777]

It depends. If this is an inherited property, you are the beneficiary and this was not your home then it will be treated as a sale of inherited property. You will not enter the 1099-S itself.  Use the information below to enter your sale.

This is treated as a sale of investment property and reported on Schedule D. The amount of gain (or loss) depends on two things:

1. The value of the home on the date of death of your parent, which will be considered your cost of the property as if you had paid that amount for the home.
2. The selling price and sales expenses on the date of sale.

In TurboTax you can follow these steps to enter the sale (click the link for more information):

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales.
   • TurboTax Desktop: Search for investment sales and then select the Jump to link.
3. Answer Yes to the question Did you have investment income in 2024?
   • If you land on the Your investments and savings screen, select Add investments.
4. Make sure to select 'I inherited it' for the way you purchased the property so that TurboTax knows to treat it with a long term holing period. This will receive the special capital gains treatment.

We are very sorry for your loss.

@JAE94