topic 1099-S real estate sale considered investment? in Investors & landlords

1099-S real estate sale considered investment?

j5c6higgins — Mon, 23 Feb 2026 12:31:53 GMT

Father in law died 2005. Before he died, he put his property in daughter A's name. In 2018, Daughter A changed quit claim deed to include three other siblings. 2022 the property was sold. Proceeds split 4 ways. Is this considered an investment? How should it be entered into turbo tax? I did receive a 1099S from title company.

Re: 1099-S real estate sale considered investment?

M-MTax — Wed, 15 Feb 2023 02:02:46 GMT

if you never used that property personally it's an investment for you. The Daughter A thing is a problem because you need to find out her basis. She gifted you your share and that means your basis is either her basis or the FMV on the date the gift was made.....depending. TurboTax? It's entered like you sold a stock or bond.

Re: 1099-S real estate sale considered investment?

AmyC — Wed, 15 Feb 2023 18:52:52 GMT

1. Second house, investment home, whatever you call it, it goes on Sch D. The 1099-S is your sales price. You acquired the home in 2018 and the basis is a little more complicated. Follow these steps:

Father-in law purchase price of the house
Plus capital improvements (add a room, driveway, etc)
Plus any capital improvements by Daughter A
Minus any depreciation claimed, rental, office
any other required items to add or subtract*
Divide by 4

*See Publication 551 (12/2022), Basis of Assets - IRS

2. Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?