Thank you for your reply. To clarify:
1. The inherited house was sitting empty from the day my wife's mother passed away and date of sale. The only thing is my wife and her sister spent one or several nights there at different occasions when they cleared out the contents inside the house, cleaned and repaired. Does it considered as "personal use" and therefore cannot deduct the loss?
2. For my example of $6,000 loss, it the house is qualified as investment property (that #1 above is ok for them to spend some nights there for cleaning and repairs), the loss can be applied to capital gains as well as ordinary income? My earlier example was other capital gains were $10,000, house loss is $6,000, so the overall capital gains would be $10,000 - 6,000 = $4,000. But if the capital gains of other assets reported on 8949 are only $5,000, the net loss ($5,000 - 6000 = -1,000) o $1,000 can be applied to reduce the other income such as wage, interests and dividends, so no carryover to next year is needed. I know TurboTax woud calculate all these, but I just want to understand these numbers independently.
3. With the TurboTax input, I take it TurboTax would put the "description input = inherited house" on form 8949? Would TurboTax also out a code (which one) on column F, or would it be blank like you reply seems to indicate?
