The cost basis of the home will be its fair market value at the time of your Mon's passing.
Form 1099-S list the gross proceeds from the sale from which you will deduct expenses related to the sale.
Generally, these expenses can be deducted as selling expenses:
- Appraisal fees.
- Inspections.
- Loan origination fees.
- Title fees.
- Transfer fees.
- Mortgage interest.
- Mortgage points.
- Real estate property taxes.
To report the sale of the house in TurboTax follow these steps:
- Open or continue your return
- In the search box, search for sold second home and select the Jump to link
- Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2021? screen
- If you land on the Your investment sales summary screen, select Add More Sales
- On the OK, let's start with one investment type screen, select Other, then Continue
- On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
- On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale
This link Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes? has information you may find useful.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
