Yes, you need to put the 1099-S in your tax return. You would enter it as a sale of inherited property.
This is the way to enter the sale of a inherited property:
- Select Federal Taxes, Wages and Income, I'll Choose What to Work On
- Scroll to Investment Income and Select Stocks, Mutual Funds, Bonds, Other
- Depending on the screen you see now select either Add Another Account, or Select I'll Type it Myself
- If you see the Financial Institution drop down box then select No Financial Institution
- Now enter your data, and then select add more details
- Select "Everything Else" from the list and continue
- Now complete the remaining questions about the property address, proceeds, date of sale, date of inheritance, fair market value and date of aquired.
https://ttlc.intuit.com/replies/3302480
