topic Re: Inheritance in Get your taxes done using TurboTax

Inheritance

kbs2 — Tue, 26 Jan 2021 18:28:25 GMT

My father passed away in California in November 2019. His estate was in a trust so we had an attorney do the necessary paperwork to sell my half of the home to my brother who wanted to keep the home. We completed this transaction by February 2020. Since the amount I received was well below the taxable amount do I even have to report it and if so where in turbo tax do I do that?

Re: Inheritance

M-MTax — Tue, 26 Jan 2021 18:36:22 GMT

You've got to report the sale especially if you get a 1099-S or other tax statement because you need to include the proceeds from the sale and your basis.....the IRS has no idea what you basis is unless you report it.

Re: Inheritance

npierson7 — Tue, 26 Jan 2021 19:16:22 GMT

You must report the sale of the property in the calendar year in which you sold it, not the year you inherited the home. Generally, inherited real estate are not taxed as income when you inherit it, but you could have taxable gains when you sell it.

How to report sale of home in TurboTax:

1. Click on Federal Taxes (Personal using Home and Business)

2. Click on Wages and Income (Personal Income using Home and Business)

3. Click on I'll choose what I work on (if shown)

4. Scroll down to Less Common Income

5. On Sale of Home (gain or loss), click the start or update button