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Treat this as a long-term capital loss. If the house remained unoccupied 1 1/2 years after your parents death, this would be a long-term capital loss if you are the beneficiary of the inheritance. All inherited property sales, whether they are foreign or domestic, are considered long-term in terms of capital gains or losses under IRC 1223(9).   This is a good thing, especially if you have future investment income that this loss can be applied to. For example, if your long-term capital loss is $15,000 but no investment income this year, you can only claim $3000 for this year and carry over the remaining $12,000. But if you have capital gains this year from other investments, more of that capital loss can be applied.   Since it is a carryover, you can apply the carryover amount to offset future capital gains. In this instance, you may not be able to claim future foreign tax credit carryovers, but you can certainly claim carryover capital losses.    Since you said that the tax was based on the money, not the money, this would be a tax that can be deducteed or credited. As I said before, you can't mix up foreign income credits or deductions. But if you paid $15,000 tax on income that the U.S. doesn't recognize because of the basis step-up (the FMV at death), you may be able to argue that it's a 901(m) tax and reported on Schedule A as I suggested earlier.   @JackSpaniel             

Thanks for this in-depth reply.    1) I checked the1099-R for the $5800 plus earnings and only "J" by itself is noted.  This is a relief as it was removed from the Roth in 2022 to stop a 6% tax going into perpetuity from the 2020 excess reporting.   By taking out the "recharacterized to Trad" the Form 8606 went away for TY 2020 and only the Form 5329 is there now.      2)  The excess was originally reported on Form 5329 in both 2020 and 2021 and taxes were paid.  I caught it in 2022 when I saw we had been taxed in 2020 & 2021 and learned about the income limits.    In my first reply, I had inadvertently thought that 2020 was backdoored also and I had to amend for pro rata (turns out the funds were put in our joint account).   So no pro rata for 2020, but definitely pro rata for 2021 - 2024 as our advisor did not ask if we owned a SIMPLE when he started the back doors.      My plan going forward is to include the SIMPLE year end balances on Form 8606 for TY 2021 - 2024 (basis should roll into the next year as I amend)  I know I will be owing taxes on all those years but it needs to be corrected.  I believe this is the right direction?    

On the IRS website you must enter everything as is on your filed federal tax return Form 1040 - https://www.irs.gov/refunds Your Social Security number Your Filing Status The federal tax refund as shown on the Form 1040 line 35a   To access your current or prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/ Scroll down to the bottom of the screen and on the section Your tax returns & documents.  Click on the Year and Click on Download/print return (PDF)

Oh and  After you get the program installed the first thing to do before you open your tax return is to update the program and install any state programs you had.  So you first might need to start a fake return to be able to download the state program (go to FILE - New)

Hi, Me again.  So indeed I experience the same things as everyone else.  Figures I enter into the worksheet don't get saved.  I did try something that DOES SEEM TO BE WORKING.  IE I can save and reopen and my changes are still there.   Go to the Student Info Worksheet.  If you scroll up to the beginning of part VI, where we are all trying to enter figures, you'll see a note that says you can't enter figures directly but gives a QuickZoom button.  If you click that button and then select the student, and then scroll down, you get the SAME F*ING spreadsheet but you can enter the figures into the right lines.  THEN if you save and close and reopen, it's still there.   I have to think about whether I am going to enter everything — IE make sure only tuition is on the tuition line, since TT but the whole 1098-T on that line, when some of it is room and board and materials purchased from them.  But at least that's a way to get what you enter to stick.

@Kbauman101 You can download the online tax data file to your computer.  Then with the 2025 TurboTax desktop editions started, click on File at the top left of the desktop program screen and click on Open Tax Return.  Browse to the location where you download the tax data file.   For the online tax data file - Click on Tax Tools on the left side of the online program screen Click on Tools Click on Save your 2025 return to your computer

Yes you can move your online return to the Desktop program without paying for Online.   To continue in the desktop version see this……. https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-the-turbotax-software/00/26129   You can buy the CD/Download here or in stores.  You need a full Windows or Mac computer to install it. https://turbotax.intuit.com/personal-taxes/cd-download