What version of TurboTax do I use to include an inherited house & property?

Forum|Forum|3 years ago
November 7, 2022
15 replies
76 views

My siblings and I were put on our parents deed prior to our parents death. We were not entitled to the home, or use of it, until after our parents death. The lawyer states that this is considered an inheritance. Do we have to use TurboTax Premier rather than the TurboTax Deluxe that we have used in the past? There is also a capital loss involved, as the house was sold to a non-family member at a loss compared to the present assessment.

Best answer by Anonymous_

You can use Deluxe for your purposes if you are using an online version of TurboTax.

You can use any version if you are using a desktop version of TurboTax since desktop versions contain all of the forms.

Anonymous_Answer

Level 15

You can use Deluxe for your purposes if you are using an online version of TurboTax.

You can use any version if you are using a desktop version of TurboTax since desktop versions contain all of the forms.

Anonymous_

Level 15

Additionally, your basis in the property is likely the fair market value on the date of your parents' death (specifically, the last to die). Ignore the assessed valuation since it is not relevant for the purposes of determining gain or loss on the sale.

You need to check with your attorney to ensure that adding your siblings to the title was not a gift (and it does not appear as if that was the case). It is more likely that you and your siblings acquired a remainder interest and your parents reserved a life estate (in which case the FMV on the date of death rule would apply).

Again, check with your attorney.

chas1103Author

Level 4

Thank you for your reply. We will have to check if the FMV and the assessed value are the same. As far as we know, we sold the house at a loss. we will verify it.

Thanks again,

Mike9241

Level 15

if the property was sold in 2021 you need the desktop version since online prep for '21 is closed. if sold in 2022, the software is not yet available - probably in November or December 2022 depending on whether you use online or desktop.

Mike9241

chas1103Author

Level 4

I did not try to change my 2021 return. I simply used my 2021 Deluxe version to estimate my 2022 taxes, but It didn't show all the forms. The house was sold in 2022.