You must report the sale of the property in the calendar year in which you sold it, not the year you inherited the home. Generally, inherited real estate are not taxed as income when you inherit it, but you could have taxable gains when you sell it.
How to report sale of home in TurboTax:
1. Click on Federal Taxes (Personal using Home and Business)
2. Click on Wages and Income (Personal Income using Home and Business)
3. Click on I'll choose what I work on (if shown)
4. Scroll down to Less Common Income
5. On Sale of Home (gain or loss), click the start or update button
