State tax filing

Yes, you must file a IT-203 (New York State nonresident return) because you have a 1099-S from a property located in New York State. Per NYS, nonresidents must file with any income, gain, loss, and deduction from real or tangible personal property located in New York State. For sales of inherited property, you have to enter this on a different screen in TurboTax. I have included instructions below for you on how to enter this transaction. 

Please follow the instructions below to enter your 1099-S and indicate it was inherited:

1. Open or continue your return.
2. In the search box, search for sold second home and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
4. On the OK, what type of investments did you sell? screen, select Other then Continue.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Other for What type of investment did you sell? Please see below screenshot.
7. Select I inherited it for How did you receive this investment? Please see below screenshot. 
8. Enter the description, date sold, proceeds on your 1099-S and 1/4 of the FMV when your mother passed away. 
9. Click Continue. 

Once complete, please make sure any 1099-S entered in different areas of TurboTax are deleted.