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Level 2
posted Apr 8, 2025 9:00:21 AM

Did Turbo Tax change my 1099-S sale of inherited home to a 1099-B entry?

I entered my 1099-S information in the 'Other' category of the Investment section and selected 'Second Home' and 'Inherited'.  

 

**My concern is after I completed the entry I found that upon returning to the investment section the tab shows this as 'Stocks, bonds, etc. (1099-B)'. 

 

Thank You, Mark

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1 Best answer
Expert Alumni
Apr 8, 2025 9:22:54 AM

The treatment of where and how the sale of your inherited property in the TurboTax program is correct.

 

The IRS considers inherited property to be long-term capital gain. The tax rate would be 0%, 15%, or 20%, depending on your income bracket.

 

Because these types of sales are considered investment sales, enter this info in the investment section of TurboTax.

 

You’ll have to use TurboTax Premium to report the sale of a second home, an inherited home, or land.

  1. Open or continue your return.
  2. Navigate to the sold second home screen:
    • TurboTax Online/Mobile: Go to sold second home.
    • TurboTax Desktop: Search for sold second home and select the Jump to link.
  3. Answer Yes on the Did you have investment income in 2024? screen, then Continue.
    • If you land on the Your investments and savings screen, select Add Investments.
  4. Follow the onscreen instructions.

TurboTax FAQ: Where do I enter the sale of a second home, an inherited home, or land on my 2024 taxes?

 

@Mark-001 

2 Replies
Level 15
Apr 8, 2025 9:14:16 AM

TurboTax is correct. When you sell inherited property, you may be subject to capital gains tax based on the appreciation of the property's value. The holding period is considered long term and the cost basis is the value at the time of the death of the decedent. 

Expert Alumni
Apr 8, 2025 9:22:54 AM

The treatment of where and how the sale of your inherited property in the TurboTax program is correct.

 

The IRS considers inherited property to be long-term capital gain. The tax rate would be 0%, 15%, or 20%, depending on your income bracket.

 

Because these types of sales are considered investment sales, enter this info in the investment section of TurboTax.

 

You’ll have to use TurboTax Premium to report the sale of a second home, an inherited home, or land.

  1. Open or continue your return.
  2. Navigate to the sold second home screen:
    • TurboTax Online/Mobile: Go to sold second home.
    • TurboTax Desktop: Search for sold second home and select the Jump to link.
  3. Answer Yes on the Did you have investment income in 2024? screen, then Continue.
    • If you land on the Your investments and savings screen, select Add Investments.
  4. Follow the onscreen instructions.

TurboTax FAQ: Where do I enter the sale of a second home, an inherited home, or land on my 2024 taxes?

 

@Mark-001