Enter it as a second home. Your basis is the Fair Market Value on the date of death for inherited property.
Enter the sale of a second home in TurboTax Online or Desktop, please
follow these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose
what I work on” (jump to full list)
- Scroll down the screen until
to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds,
Bonds, Other” and select “start’ (or “update” is you have already worked
on this section)
- The first screen will ask if
you sold any investments during the current tax year (This includes any
sale of real property held as an investment property so answer “yes” to
this question)
- Since you did not receive a
1099-B, answer “no” to the 1099-B question
- Choose type of investment you
sold - select Second Home
- Some basic information:
- Description – Usually
the address of the property sold
- Sales Proceeds – Net proceeds
from the sale (select box to input selling expenses not reported on
1099-S)
- Date Sold – Date you sold the
property
- Tell us how you acquired the
property - purchased
- Any business or rental use? -
select personal use only (please note that capital losses are not allowed
on personal use property) If you make another selection, you may need to
report this sale under sale of business
