FYI, you didn't need to wait to sell. The sale of inherited tangible property, like real estate, always gets long-term capital gain treatment even if sold the same day that you got title. Your basis would be the Fair market value on the date of his death. The sale gets reported on form 8949/schedule D. For the date acquired select inherited from the drop-down menu.
You may be able to claim a capital loss on the inherited property. Here are the conditions that need to be met:
- Arm’s Length Transaction: The sale must be an arm’s length transaction, meaning it was conducted between unrelated parties.
- Unrelated Buyer: You sold the house to an unrelated person.
- No Personal Use: You did not use the property for personal purposes.
- No Intent to Convert: You did not intend to convert the property to personal use before the sale.
Additional reporting would be required if the property was rented during the period you owned it.
This answer has been verified for accuracy by an Intuit expert employee
