In Turbo Tax, the sale will be entered in the Investment section (unless you are a real estate professional, then it would be entered on Schedule C).
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds, Other
• Respond Yes – you sold something
• Respond No – you did not receive a 1099B
• Choose Everything Else as the asset sold
Enter the information about the sale of the house you inherited. For the Tell Us How You Acquired This Property, indicate that you inherited it
Because the property is inherited, your basis will be the fair market value at the date you inherited the house. If there is still a loss generated, you would include that in your capital losses.
