Retirement tax questions

It depends. Assuming that each sibling is reporting their share of the sale you will report it as follows on each return for siblings who sold the property to the other sibling.

1. Find the fair market value (FMV) on the date of death. The is the Cost basis for the siblings.
2. Split the result in 1. by the number of siblings who inherited the land (including the one who bought out the others).
3. The result in 2. is the cost basis for each sibling who sold their share to the one sibling who bought it.
4. The selling price must be divided by only the number of siblings who sold it (not the one who bought it)
5. The result in 4. is the selling price for each of those siblings who sold their share.
6. Use the same method as 4. for any selling expenses.
7. Be sure to select 'I Inherited the property' as how it was acquired (TurboTax knows that inherited property always gets long term holding period).

Enter the inherited property sale in TurboTax using the steps provided.  

1. Open or continue your return: Choose the Search box and type 'sale of second home' then use the Jump to link to enter your inherited sale) or follow the menu. In TurboTax Online select 'See more' in the FAQ then click 'sold second home'.
2. Under Wages & Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2024? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the OK, let's start with one investment type screen, select Other, then Continue
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
6. On the next screen, select  Other (choose this also for inherited homes) then select  I inherited it under  How did you receive this investment? (For TurboTax Desktop you can enter a description of 'Inherited Home' and long term holding period).