Deductions & credits

Please review this Turbo Tax link for reporting a sale of a house with multiple owners.To determine your portion of the sale, you will report the $30,000 for your interest in the house. Also you need to determine the basis for the house. Since your mother essentially gifted you the house by placing you on the deed, you would report your basis on what she paid for it and divide it by 3.  For an example, if she paid $60,000 for it, your basis is $20,000. 

You will still need to report this as investment income even though you do not think of it as investment income. here are the steps for reporting.

1. nce you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
6. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. Choose type of investment you sold - select everything else
9. Some basic information:
   1. Description –  Usually the address of the property sold
   2. Sales Proceeds – Net proceeds from the sale 
   3. Date Sold – Date you sold the property
10. Tell us how you acquired the property - you received it as a gift
11. Enter the date your name was placed on the deed
12. Enter the basis of the house/3  when your mom bought it plus any capital improvements since it was owned. 
13. If you had a loss, on the question of "Did you use this property for business or investment?" If the gifted house was not used for any personal use (no family member lived in it or used it between the time of inheritance and the sale), you will answer that this was for investment.