How do I report a sale of a house I inherited? I was under the impression that I didn't have to pay taxes on it but I got a 1099-S from the title company.

[mbrasher85730]

We originally inherited the house from our mother in 1985.  I signed it over to my sister then as she had put more money in it than it was worth and was living in it and did so until she died.  When my sister passed her lawyer did a Transfer on Death to me.  I immediately put it up for sale and it sold approximately 4 months after her death.  How do I determine the cost basis and how do I enter it in Turbo Tax?

[Ashby · Accepted solution]

Follow the steps I have posted below for sale of a second home. Essentially, you will be "backing out" the 1099-S income. Unless there was some reason for a tremendous increase in home value in the 4 months you owned it, you can just enter your basis as the same amount as the 1099-S.

https://ttlc.intuit.com/replies/4241480