Deductions & credits

If you are selling an inherited property, you will report the loss on Schedule D and Form 8949.  

The basis of the property will likely be the Fair Market Value of the home on the date of death of the person from whom you inherited the property.  I am including a link to IRS Publication 551 which will provide you with more information regarding the basis of the property. Please see the bottom of Page 9 and 10 regarding Inherited Property  Basis of Property

To enter the sale in TurboTax, with your return open: 

1.  Go to Wages and Income and scroll down to Investment Income and find Stocks, Mutual Funds. 

2.  Follow the prompts in the section (you will answer no to the 1099B question)

3.  Choose type of investment you sold - select everything else

4.  The basic Information will be;

1. Description –  Usually the address of the property sold
   1. Sales Proceeds – Net proceeds from the sale 
   2. Date Sold – Date you sold the property
2. Tell us how you acquired the property - inheritance
3. Enter the date inherited
4. Enter your fair market value or determined basis.
5. Continue through the interview.