The 1099-S form is informational form. To enter the sale of an inherited home, see Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?
The inherited home is a capital asset. When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.
- A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
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