Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)Next click on “I’ll choose what I work on” (jump to full list)Scroll down the screen until to come to the section “Investment Income”Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)Since you did not receive a 1099-B, answer “no” to the 1099-B questionChoose type of investment you sold - select Second Home

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vijdam

Level 2

Solved

I sold an inherited house in India in 2021. The proceeds are in an Indian bank and I filed my taxes there. Where and how do I report that income in TurboTax premier?

Forum|Forum|3 years ago
October 12, 2022
2 replies
40 views

No text available

TurboTax Premier Online

Best answer by Critter-3

Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
Next click on “I’ll choose what I work on” (jump to full list)
Scroll down the screen until to come to the section “Investment Income”
Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
Choose type of investment you sold - select Second Home

Critter-3Answer

Level 15

Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
Next click on “I’ll choose what I work on” (jump to full list)
Scroll down the screen until to come to the section “Investment Income”
Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
Since you did not receive a 1099-B, answer “no” to the 1099-B question
Choose type of investment you sold - select Second Home

pk_

Level 15

@vijdam , Having gone through your post and great comments / help by @Critter-3 and @rjs , I would like point out the following ( you may already be aware of and if not 😞

1. Please change your sign-in name -- it is too close to an email address ( just in case)

2. The basis of the inherited asset/property is the Fair Market Value of the prop. on the day of the demise of the decedent. Hopefully you have it and if not you need to find it and change to US$ at then exchange rate. Note that for India tax purposes you would be using an indexed valuation and this may or may not be the basis .

3. If the sale is occurring after a period and the property was rented out for profit, then (a) the such income would have been taxable income in the USA and (b) there were allowable depreciation.

4. If the prop. was rented till sale, then your basis is eroded by the accumulated depreciation. Thus your basis becomes Adjusted basis = Acquisition basis LESS allowable accumulated depreciation. Also your Sales proceeds is reduced by the sales cost such as commission, required repairs etc. , transfer tax etc. etc. thus giving you adjusted sales proceeds.

You gain for US purposes than is Adjusted Sales Proceeds LESS Adjusted Basis all in US$ at published / applicable rates.

5. If you have to pay income tax on the gain on the disposition of the asset , because there is foreign source income that is being taxed by both US and India , you can ask for foreign tax credit or deduction.

Do you need more help on this ?

vijdamAuthor

Level 2

Thank you for the details, very helpful.

I tried asking for foreign tax credit or deduction since this is foreign source income that is being taxed by both US and India. But TurboTax only shows this option - “foreign earned income” and includes wages and business income made while working in another country. It is asking for info from 1099-b/div/int or K-1.

But this property sales doesn't fall in any of the above.

Please advise.

rjs

Level 15

In order to report the sale in TurboTax, you must convert all amounts to U.S. dollars. All amounts that you enter in your U.S. tax return must be in U.S. dollars.