Short term Capital Gains and Losses were reflected in the long-term Capital Gains and Losses-Assets Held more that one Year section Part II, line 10.

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I inherited a home in late March 2016 with my siblings. At the time of my Mother's death, the home was valued higher than when it sold seven months later. I received a 1099S and completed the Gains and Loss Section in Turbo Tax reflecting a loss. After, e-filing my taxes I noticed on the Capital Gains and Losses form, Schedule D, that my loss was reflected in Part II Long-term Capital Gains and Losses rather than in Part I Short-term Capital Gains and Losses.

I am not sure that this issue would make a difference in the amount I reflected on the Form 1040, line 13.

However, does that mean I need to correct the Capital Gains and Losses form, Schedule D? And then send the IRS revised/corrected documents?  

[view2 · Accepted solution]

If you inherit investment property, your capital gain or loss on any later disposition of that property is treated as a long-term capital gain or loss. . This is true regardless of how long you actually held the property.