Get your taxes done using TurboTax

I am sorry to hear of your loss.

An inherited house is considered investment property and you can deduct the loss on the inherited property, but only if there was no personal use after your mother passed away - it was simply held between inheritance and sale). The sale also needs to have been made to an unrelated party in an arm's length transaction. 

Here's how to report your 1/3 of the loss in TurboTax Online:

1. Navigate to Wages & Income > Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) > Add/Edit
2. Add Investment
3. Choose Enter a different way
4. Choose Investment type of Other
5. Add a description
6. You will be asked what type of investment, choose "other". ‌Also, indicate this was inherited.
7. Proceed to enter the rest of the information