To add a few details to the information from SuperUser Carl,
take a look at the following:
TurboTax will not apply the 33% allocation to the sale of
the inherited home. You will need to do
that by only entering your portion (33%) of the cost basis and the sale price. That way your return is only reporting your
portion of the sale. Each individual
will need to do this on their own return.
This type of sale is entered as a sale of an asset that will
be reported on Schedule D for capital gains.
Using TurboTax, take the following steps to get to that section of your
program:
- Using the search
box in the upper right corner, type “inherited
home – home sale”. Then click Find.
- The search
results will show a link to Jump to
inherited home – home sale.
Click that link.
- This will bring
you to the correct section in the program.
Answer the question about selling an investment with Yes.
- Answer the
question about receiving a 1099-B with No.
- Assuming that
you did not use the property as a second home, choose Everything Else as the type of investment sold (not Second
Home).
- Proceed with the
interview and answer the questions reporting only your net proceeds (33%) of
the sale. Be sure to also adjust
the fair market value of the property to only consider your portion (33%) of
the value since you only owned a portion of the property.
