Do I need to claim inherited homes as "purchased?"

[ArcticWlf]

I inherited two homes from my late father. Do I need to claim these as "purchased homes?"

[Anonymous_ · Accepted solution]

I am sorry for your loss.

You will want to show the homes as having been inherited (if you are selling them) since your holding period is automatically long-term regardless of how long you have actually owned them.

[TeresaM]

You will enter the sales in the Investment section but will be able to designate that they were inherited. In general, you do not need to pay tax on the value of the inheritance, only on increased value after you received them. 
 

1. Go to the Wages and Income section
2. Investments and Savings and Show More
3. Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)  click Start or Revisit
4. Click the Add Investments button
5. Enter a Different Way
6. Select Other other Continue
   

1.  Select Second Home from the investment type drop down
2.  and Inherited on the next drop down

This will ensure that you see the questions needed to categorize this income as inherited.