Deductions & credits

If you get a 1099-S Form in your name, for the sale of the home, you will have to report it on your tax return. Each of you should report your share of the sale. 

In Turbo Tax, enter the information under the Income & Expenses tab.

1. Look for Investment Income on the income list. If you don't see it, click on Add More Income in the lower left corner.
2. Select Stocks, Mutual Funds, Bonds, Other and click Start or Edit to the right.
3. Answer the first question, "Did you sell stocks, mutual funds, bonds, or other investments in 2019?" yes.
4. Answer the second question, "Did or will you receive a 1099-B form or brokerage statement for these sales?" no.
5. Enter a description on the next screen.
6. Select "Second Home" and "I inherited it".
7. Enter your information from the 1099-S Form. 
8. "Proceeds" and the date should match what is on the 1099-S Form.
9. In the box labeled, "Fair market value when previous owner passed away" enter your total basis. Your total basis is the value of the property when your mother passed away, plus any improvements you made and the cost of selling the property. 

If only one of you gets a 1099-S Form for the entire sale, that person will need to report the full amount of proceeds on their tax return. In that case, for the basis, they should report their 1/4 of the total basis and add 3/4 of the sale price to the basis to account for the amounts received by the other three.

If each of you gets a 1099-S Form reporting your share of the sale, you can just report 1/4 of the total basis for each of you.

I am sorry for your loss and hope you find this helpful.

{Edited 1/17/2020 12:41 PM}