Inherited property that you re-sell is considered Investment Property.
This is where you report it.
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button
Your cost is the Fair Market Value on date of death, plus improvements made to property prior to sale. Then your Sales Price less selling costs (realtor fees, closing costs) equals your profit or loss on the sale.
Did you sell it to a related party (family member) at a reduced price? Can you give more detail on the sale, as generally if this was sold to unrelated person, the loss is deductible. Thank you.
We sold the property to a stranger. I can’t find in TurboTax where to do the arms length transaction. When I entered the numbers for the sale it said because it was not an investment property or a business I could not claim a loss. Thank you for your help.
Inherited property that you re-sell is considered Investment Property.
This is where you report it.
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button
Your cost is the Fair Market Value on date of death, plus improvements made to property prior to sale. Then your Sales Price less selling costs (realtor fees, closing costs) equals your profit or loss on the sale.