Open your return in TurboTax and type Sale of Inherited Home in the search box at the top right and click on the Jump to link.
You will be able to add information for the sale of the inherited home as a sale of an investment property.
- Date sold: From your 1099-S
- Date acquired: Date of the decedent's death
- Sales proceeds: From your 1099-S
- Cost or other basis: same as proceeds.
Holding period is Long term.
Continue through the interview until you reach done. You will have no income or tax from this reporting. The property receives a step up in value upon the decedent's death to the Fair Market Value. Assuming the estate sold it for FMV or less, there is no gain to be taxed.
