Q. My first question is about why the date of acquisition shows inherited, no date acquired, and shows F long term?
A. That is allowed and proper. "Inherited means you don't have to bother with dates and it's automatically long term regardless of the time the heirs owned the property. Simple answer: that's the rules.
Q. My second question is about the costs associated with the home closing. Do I put that amount in divided by 5?
A. Yes.
Q. I wouldn't want to end up with a capital loss that is not allowed by the IRS.
A. You are allowed to claim a capital loss on an inherited home, UNLESS there was "personal use" between the time you inherited it and sold it. "Personal use" would include any other family member living there in the interim. There are two ways to avoid improperly claiming a capital loss: 1. Show the same number for both sale amount and cost basis or 2. The interview should give you a question about qualifying for the capital loss deduction.
