1099-S for inherited property - home

[lmr57]

I received a 1099-S for sale of the home I inherited from my Mom.  I am using 2024 Home and Business Desktop.  When I enter the information, it says 1099B in the investment sales listings.  Is that correct?  Also, I paid various selling expenses for this transaction like Transfer Tax/Deeds filing etc., but when I enter those in on the box that asks that question, it does not adjust the sale for those expenses.  Do I add those expenses to my FMV at date of death?  

[DavidD66]

Yes.  You will report the sale in the same section in which you report stock and other investment sales, some of which are reported on Form 1099-B.  As you go through the questions you will be asked if you received a Form 1099-B - answer no.  Unless you held it long enough for it to be investment property or used it as rental, it will be a personal item.  Be sure to indicate that you inherited the house.  That will tell the program that it is long-term, regardless of how long you held it.

All the selling expenses like transfer tax, deed filing, commissions, advertising, anything you paid at closing are an adjustment to you proceeds.  After entering the amount on Form 1099-S, you will be able to enter an adjustment to the proceeds.  Enter all of you selling costs.

[lmr57]

Thank you.  So it will shop up on form 8949 and indicates inherited property with a code E in column (f) and the selling costs in column (g)?

[JamesG1]

You are correct.  Reported on IRS form 8949 and IRS Schedule D.

@lmr57