How do I report a gifted house we owned for over a year which we renovated but never rented and had to sell it when layed off work?

[Hal_Al · Accepted solution]

You have the sale of investment property. In TurboTax (TT), enter at:

- Federal Taxes tab 

 - Wages & Income

Scroll down to:

-Investment Income

   -Stocks, mutual funds, Bonds, Other (Real estate is other)

The cost basis in a gift is the giver's cost basis (usually what he paid for it). Add that to you renovations cost for your revised cost basis. Your taxable gain or loss is the difference in what you sold it for and your cost basis. Closing costs are added to your cost basis