Sale of Parents Home with name on deed

[AC1919]

I have a 1099s from the sale of my mothers home because my name was on the deed. My mother received the all the proceeds from this sale as she is still alive and chose to live somewhere else. Our names were added to the deed at some point many years ago. Do I have to report this sale even though I didn't receive anything from it? If so, how? This is not my primary home and I can't find where to add this 1099s on turbo tax that fits my situation.

I called for assistance and was told that I didn't have to report it at all but that doesn't seem right.

If I report the this form as a sale of my main home  even though it's not, then it's telling me that I owe tons of taxes on this property so that's not right either.

I see online talk of an exemption form  8949 but that is no where on Turbo Tax that I can find. When I click many of the links to see where to file this information there are always follow up questions that don't apply to me and it takes me back out to the main screen.

Please help. I just need basic simple step by step instructions on if I have to report this weird situation or not, and where. Again, my name and siblings names were only on the deed and none of us benefited from this sale. 

[JamesG1 · Accepted solution]

You should report the IRS form 1099-S but report the amount of the cost basis on IRS form 8949 as the same as the proceeds of the IRS form 1099-S.

You will report a net $0 income on your Federal 1040 income tax return.

IRS form 1099-S Proceeds from Real Estate Transactions may report:

• Your main home, 
• A second home, 
• A vacation home, 
• Land,
• Residential rental property, or
• Real property recorded as a business asset.

The tax treatment of each of these transactions differ. Sale of a second home, an inherited home or land are considered investment sales.

In TurboTax Online Premier, follow these steps to report the sale:

• Click on the Search magnifying glass and enter sale of second home.
• Click on the Jump to sale of second home link.
• Click on Add investments.
• At the screen Let's import your tax info, click on Enter a different way.
• At the screen OK, let's start with one investment type, select Other and click Continue.
• At the screen Tell us more about this sale, enter the name.  Click Continue.
• At the screen Now, enter one sale….., enter the information.  
• At the box Fair market value when previous owner passed away, enter the same dollar amount of the Proceeds.
• Click Continue.
• At the screen Let us know if any of these situations apply to this sale, answer None of these apply.  Click Continue.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Retain copies of all the paperwork associated with the second home in your tax papers.  It is possible that a tax authority will contact you at a later time and ask about the IRS form 1099-S income.

@AC1919

[Edited 02/23/25 | 3:10 pm PST]

[AC1919]

Thank you for making that clear. I really do appreciate the way you laid everything out. 

I followed the steps but they were slightly different on the Deluxe version which is what I am using. Do you mind writing out the steps using the Deluxe version. I want to be sure that I am doing this the right way. 

You also mentioned that by following these steps that it would be filling out a schedule D on the 1040 tax paperwork, does that mean that a form 8949 was not needed for my situation?

I tried to read up on that because I kept seeing that the questions turbo tax would ask me would eventually lead to that form being filled out as well as a schedule D but they never did.  And I can't figure out how to fill those out on my own when I looked into them through the IRS website.  So if you are able to explain the step by step to me on the Deluxe version, I would be extremely grateful. 

Thank you again!

[DianeW777]

It depends.  If  you are using TurboTax Online then you will be required to upgrade to TurboTax Online Premier for a capital transaction reported on Schedule D. Form 8949 will not be part of your return for a sale of a home.

1. Open your TurboTax Online or TurboTax Desktop return
2. Search (upper right) > Type schedule d (1099b for TurboTax Online) > click the jump to... link
3. Choose to enter it yourself and select Other as the type of sale