You will each need to only show your proportionate share of the total proceeds being reported on 1099-S. (I am sorry for your loss)
So for example, if the total proceeds are $51,666.68, then you will split it 3 ways and only report 17,222 each on your separate returns. For the cost basis, you will use the FMV at the date of inheritance.
To
enter the sale of a capital asset in TurboTax, log into your tax return (for
TurboTax Online sign-in, click Here
and click on "Take me to my return") type "investment sales" in the search bar then
select "jump to investment sales".
TurboTax will guide you in entering this information.
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
sale of real property held as an investment property so answer “yes” to
this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose type of investment you
sold - select everything else
- Some basic information:
- Description –
Usually the address of the property sold
- Sales Proceeds – Your
proportionate share of the net proceeds from the sale (your portion of
1099-S amount received for the property)
- Date Sold – Date you sold
the property (on 1099-S)
- Tell us how you acquired the
property - inheritance
- Enter the date inherited
- Enter the your fair market
value - Your proportionate share of the Fair Market Value of the property
at the time of inheritance plus any capital improvements since inheriting
it
- If you had a loss, on the
question of "Did you use this property for business or
investment?" If the inherited house was not used for any personal use
(no family member lived in it or used it between the time of inheritance
and the sale), you will answer that this was for investment
Click IRS
answers on Gifts and Inheritance for more information from the IRS on the
sale of an inherited property.
