MayaD
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Get your taxes done using TurboTax

If you sold an inherited property, report the sale on Schedule D (Form 1040), Capital Gains and Losses and on Form 8949, Sales and Other Dispositions of Capital Assets:

 

In TurboTax you would  report it as investment sale.

  1. Since you did not receive a 1099-B, answer “no” to the 1099-B question or select skip Import 
  2. Select Other for What type of investment did you sell?
  3. Select I inherited for How did you receive this investment? 

The basis of property inherited from a decedent is generally one of the following:

 

You can deduct the selling expenses from the gross proceed.

 Sales expenses include:

  • commissions
  • appraisal fees
  • broker's fees
  • legal fees
  • advertising fees
  • home inspection reports
  • title insurance
  • transfer taxes or fees
  • geological surveys
  • loan charges (points) or other fees paid on the buyer's behalf
  • any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.)

 Add any improvements to the cost basis of the property.

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