My husband's grandparents held a Life Estate on their house & land. My husband now owns fee simple as both died. Sold property Dec 2016. Received 1099S...how to file

Forum|Forum|7 years ago
June 6, 2019
1 reply
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We received no money at closing & paid all expenses; buyer signed deed of trust.

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In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).

• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Everything Else as the asset sold

Enter the information about the sale of the house you inherited. For the Tell Us How You Acquired This Property, indicate that you inherited it

Because the property is inherited, your basis will be the fair market value at the date you inherited the house. Any gain or loss is included as a capital gain or loss. Because it is inherited property, it is considered long term.

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Anonymous

Answer

In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).

• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Everything Else as the asset sold

Enter the information about the sale of the house you inherited. For the Tell Us How You Acquired This Property, indicate that you inherited it

Because the property is inherited, your basis will be the fair market value at the date you inherited the house. Any gain or loss is included as a capital gain or loss. Because it is inherited property, it is considered long term.