Hi,
My mother had her home in a Life Estate, with me and my 2 other siblings as Joint Tenants with Rights of Survivorship. My questions is how do I properly record this in TurboTax? Some points of note:
On the date of inheritance, the fair market value was $385k. We sold the property not too long afterwards for the same amount, 385k. The proceeds from the sale were 128k after paying closing costs, reverse mortgage company, etc. We each received a 1099-S form listing the total gross proceeds of 128k. I would have expected that form to just show my 1/3 which would have been about 42k, but that's not what I'm seeing. So in TurboTax, do I just list the investment type as "other", and select "inheritance" with the fair market value of 385k and the net profit of 42k (my 1/3 payment)? Also, would I categorize it as a non-investment property for personal use, which would record the sale as a $0 loss?
