How do you get form 8949 box "B" to say "Inherited" for the sale of your primary residence if you have a step up in basis?

[jtcodipilly]

MFJ, lived in home for 4 years with spouse. Never taken the exclusion prior.

[Mike9241]

on the 1099B worksheet in the date acquired box type "inherited" no quotes

also make sure that the 8949 code is D, E or F (so you get long-term capital gain treatment) 

[Critter-3]

If you did not get a 1099-S at closing then you do not need to report the sale.   If you did then use the Home Sale section of the program to exclude the gain ...  "inherited" is immaterial since you have owned the home for more than one year ... either way it is a long term gain if you cannot exclude it.  Make sure to check the 1099-S box if you got one ... 

1. Once you are in your tax return (for TurboTax Online sign-in, click Here), click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose “Sale of Home (gain or loss)” and select “start’
6. You will want to use the "Easy Guide" to determine the adjusted basis on this home

[jtcodipilly]

Mike,

In the date acquired box for sale of home, it does not let me type inherited.

[jtcodipilly]

Critter,

I agree that it is going to be long term regardless, but know that when inherited basis is present, the word inherited is supposed to be in box "B" to indicate to the IRS that this is an inherited asset. In TT it won't allow me to type inherited in the date acquired module and thus I cannot trigger "inherited" to show up in box "B". Trying to avoid any redflags for the IRS. Thanks for your help.

[biotechengr]

I'm having the same issue reported in this thread with TurboTax 2021 not allowing me to edit Schedule D (form 8949 extension) where I need to enter the word "INHERITED" in column(b) date of acquisition due to a qualified step-up cost basis event.   TT appears to only accept date codes in the step-by-step query for this info.   In my case it is for the sale of a home (1099-S) and do not have a 1099B worksheet to edit as suggested in this thread to fix the issue.  Please help.

[GeorgeM777]

If you are using TurboTax online, in the Your Investment sales summary page, select  Add more sales, then on the page where you are asked to select an investment type,  select Other.   On the page where you will review the sale of the home, in the box requesting information about how you received this investment, select I inherited it.  Continue through the rest of the application. 

@biotechengr