You can't claim the loss on personal property. Losses from the sale or exchange of personal property is not deductible.
- That fact that you never personally used the home does not matter. It's a second home you owned since you inherited it.
- Per IRS Publication 544 , Page 20, Personal-use property. Generally, property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible
You may enter the sale in TurboTax, using the instructions in your question. After you enter it, TurboTax will let you know that the loss is not deductible since it's a personal loss.
Note: The basis of the inherited property is the one of the following:
- The fair market value (FMV) of the property on the date of the father's death. or
- The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation.
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