topic Inheirted home sold by the trust in Get your taxes done using TurboTax

Inheirted home sold by the trust

AMWS — Tue, 10 Feb 2026 10:36:30 GMT

My mothers personal residence was held in her trust. It was sold 5 months after her death. Between her death and the sale no one occupied the house. How should I answer the question on the of pricipal residence? If I select it was not my personal residence it treats it as an investment which affects the K-1.

Re: Inheirted home sold by the trust

MarilynG1 — Tue, 27 Feb 2024 22:21:51 GMT

Yes, the sale of an inherited home is treated as the sale of an investment, if you inherited the property from your mother.

Use the 'stepped up' Cost Basis of the home (FMV at date of death) in calculating any Capital Gains.

Here's more details on reporting the Sale of Inherited Home.

Sorry for your loss.

@AMWS

Re: Inheirted home sold by the trust

AMWS — Wed, 28 Feb 2024 00:33:05 GMT

Thank you. It was confusing as one post said "Primary Residence" meant for the decedent and not for the beneficiaries.