You need to determine what the cost basis of the house was. If the owners purchased the house, the cost basis would be the purchase price plus cost of improvements plus expenses of selling it. If the house was inherited, substitute the fair market value of the house for the purchase price.
Enter each owner's share of the sales proceeds as the sale amount, and enter their cost basis as such and the difference will be a gain or loss.
If the house was the owner's principal residence, enter the sale in the "Sale of Home" income section in TurboTax under "Less Common Income."
If the owners didn't live in the house, enter the sales as follows:
1. Go to the "Federal" section of TurboTax and click on "Income and Expenses"
2. Look for "Investment Income" and click on "Stocks, Mutual Funds, Bonds, Other"
3. Answer "No" to the question about receiving a form 1099-B
4. When asked what type of investment sold? answer "Second Home"
5. Enter the property address of the house sold and the proceeds reported on the 1099-S
6. Indicate that you inherited the home if you did
7. Enter the date and fair market value of the home when you inherited it, or the cost if you purchased it
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