Hello, My wife inherited a house from her mother and sold the house at a loss in 2024. I know that for primary home and second home, If the total of cost basis plus selling expenses are higher than the sales price, we need to zero the loss out and cannot take the loss on selling the house. But for inherited house, can we report loss on the selling the house and use the loss to offset capital gains on other assets such as stocks reported on Schedule D and form 8949? If we can report a loss (instead of zero), is there a limit on the loss on the line item for the sale of this inherited house? I read the maximum capital loss is $3,000. Is this amount the net of all the capital gains and losses on all the assets? So if the loss on the inherited house is $6,000, and the capital gains on other stocks and assets are $10,000, do we subtract the $6,000 loss from the $10,000 capital gains, and report a net capital gain of $4,000?
Also, how do I input the loss in TurboTax? Where is the section to input inherited house in TurboTax? And what is the code to put into column F of form 8949 ?
