Get your taxes done using TurboTax

Yes.

If you inherited this house and did not live in it as your home, you will enter the sale of this property under

• Wages & Income
• Investment Income
• “Stocks, Cryptocurrency, Mutual Funds, Bonds, Other”
• Start 

For TYPE select "Other"

Enter the information from the 1099-S and your records as if you had a 1099-B

Name it "Inherited House" or something similar

Select "Second Home"

Select "I inherited it"

Type Inherited House or the address or something else suitable for the Description 

Enter the date sold

Enter the selling price- Enter the amount you received which would be the selling price less selling fees, such as commissions paid and Transfer tax, BUT NOT PROPERTY TAX PAID. You will enter the property tax paid later

According to the IRS

“Transfer taxes (or stamp taxes).

 …. If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale.”

The property tax withheld is treated as if you paid them directly to the county, so add that to any other property  tax you paid during the year under:

• Deductions & Credits
• Your Home
• Property Taxes 
• START

The additional property tax will only matter if you Itemize Deductions. 

Inherited Property is treated as "Long-Term" for gain or loss.

If the value of the property stayed the same from the date you inherited it until you sold it, you will have a loss in the amount of the selling fees.

If the value of the property decreased from the date you inherited it until you sold it, you will have a loss in the amount of the selling fees plus the decrease.

If the value of the property increased from the date you inherited it until you sold it, you will have a gain in the amount of the increase less the selling fees.

@Jodiesfam