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rbrosso
Returning Member

NYS IT-203 (Non-Res) - Sale of Deceased Mother's Property

I am a DE resident.  My mother died in late 2019.  My 3 siblings & I sold her home in 2020, and we each got 1099-S's for 1/4 of the gross proceeds.  When it sold, our real estate atty filed the requisite form, showing there were no taxes due, because of the step-up basis.  I had no other income in NY. 

My first question is do I really have to file the 203, since I know I don't owe any taxes to NY (& that form was submitted upon closing)? 

Assuming, I do, however, I paid the $45 for the additional state form.  (I have TT Premier.)

I do not understand the TT page/questions, asking me for Sold Assets - Difference Basis (& the amt. I would've declared, if).  I've filled the  Fed Amt & NYS Amt boxes out different ways, & I keep getting a Tax Due amt. in excess of $1k, which I know is wrong.  I also get no questions where I can put in the cost basis of the house at the time my mother died.  Furthermore, there are no TT explanations on this page or anywhere else in the program.  I must be doing smthg. wrong.  Please help.  Thank you.

3 Replies
LenaH
Expert Alumni

NYS IT-203 (Non-Res) - Sale of Deceased Mother's Property

Yes, you must file a IT-203 (New York State nonresident return) because you have a 1099-S from a property located in New York State. Per NYS, nonresidents must file with any income, gain, loss, and deduction from real or tangible personal property located in New York State. For sales of inherited property, you have to enter this on a different screen in TurboTax. I have included instructions below for you on how to enter this transaction. 

 

Please follow the instructions below to enter your 1099-S and indicate it was inherited:

  1. Open or continue your return.
  2. In the search box, search for sold second home and select the Jump to link in the search results.
  3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
  4. On the OK, what type of investments did you sell? screen, select Other then Continue.
  5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
  6. On the next screen, select Other for What type of investment did you sell? Please see below screenshot.
  7. Select I inherited it for How did you receive this investment? Please see below screenshot. 
  8. Enter the description, date sold, proceeds on your 1099-S and 1/4 of the FMV when your mother passed away. 
  9. Click Continue. 

 

Once complete, please make sure any 1099-S entered in different areas of TurboTax are deleted. 

rbrosso
Returning Member

NYS IT-203 (Non-Res) - Sale of Deceased Mother's Property

Thank u.  Yes, I thought so.

My problem is with TT's NYS form (IT 203).  I dont understand the 2 boxes (see original message).  There are no explanations for that.  (I already completed my 1040 re. this b4 sub I submitted my question.)  My problem is only with the 203, not the 1040.

 

P.S.  When do u expect the problem with e-filing a state form (after the Fed form has been filed) to be fixed?  This is a particular problem with the NYS forms, since they REQUIRE e-filing when TT is used.  Thanks for helping with both issues!

DianeW777
Expert Alumni

NYS IT-203 (Non-Res) - Sale of Deceased Mother's Property

Once you complete the federal return, the information for your sale should flow to the NYS return.  There should be no changes or adjustments on that return. 

 

See the image below for the allocation screen and make any change here. The combined capital gains will be shown and you must enter only the gain, if any, for the house that was sold. If zero, enter zero.

 

Continue to check back in your return to try the e-file, there are many changes taking place right now due to the recent American Rescue Plan.

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