I am exactly in the same situation, but I am still a little confused.
My last living parent pasted away this year in March and me and my two other siblings inherited the house.
We officially sold the house on August.
The cost basis is $300,000. That was the market and agreed upon price that we sold it for.
Me and my two other siblings each got $100,000.
My issue is when I entered the "Sale proceeds" of $100,000 and entered the "Cost or other basis" of $300,000. the summary page that says "Here's all the investment accounts we have so far" it states that I have a (Loss) of $200,000.
How can I have a (loss) of $200,000 when the house was inherited and I didn't put any money into it as it wasn't mine to start with?
Also when I continue to do my State's income tax on the section that says "Any Short-term Capital Loss Differences? It states below it 'You reported a short-term capital losses of -$200,000 on your federal return.
Is this something to worry about on next year's tax filings or should I just ignore this?
