On the screen for "Tell us how you acquired this home" make sure you are selecting "inheritance". THen you will "NOT" be asked for date you purchased the home. Instead, you'll be asked for date you "inherited" the "investment".
Then on the screen for "Loss on Property" if this home was "NEVER EVER EVER" used for "ANY" business purposes, (to include renting it out or having claimed home office expenses) by you, then you select "I used this for personal non-investment purposes" and press on. Your loss on the sale will *not* be allowed.
If the property was used *by you* for business purposes, then you flat out do not report the sale in the investments section.
If used as an investment, then while you're report the sale in the investments section, you will not report it as the sale of a 2nd home.
