Investors & landlords
The sale of inherited property does not require a date acquired because it is always considered as held long term and receive long term capital gain treatment. In other words it is always assumed that it has been owned more than one year. It's simply a special tax rule for inherited property.
Once you select 'I inherited it' for the question 'How did you receive this investment' a date acquired is no longer needed for TurboTax to know how to treat the gain (if any) or loss. Your cost basis will be the fair market value (FMV) on the date of death, (the amount it would have been redeemed or sold for on that date).
To record your sale of inherited mutual funds follow the steps below.
Sign into your TurboTax account, then follow the steps below.
- Select Wages & Income > Scroll to Stocks, Mutual Funds, Bonds, Other > Review
- Select Edit beside the inherited stock or Add another sale
- Continue to Review your (description of inherited stock) sales > click the pencil to edit this stock sale
- Continue through the rest of the screens.
- See the image below.
