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Get your taxes done using TurboTax
You will report the sale under investment income on your return. When you sell your home, your gain (profit) or loss for tax purposes is determined by subtracting its basis on the date of sale from the sales price (plus sales expenses, such as real estate commissions).
You calculation for gain is:
(Selling price - closing costs) - (Price paid + closing costs + capital improvements) = Capital Gain
IN your case, your cost basis, (purchase price) is the value of the home on the date of death of the decedent, so when your uncle passed away, how much was the home worth on that date. Then you take that value and subtract it from the selling price. You would also enter the selling expenses/closing costs as well, which are subtracted from your selling proceeds to get a net selling proceeds. Based on the information in your question, you may have a loss.
The software will walk you through entering the information and calculating any tax due on the capital gain, if there is one.
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