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Level 3
posted Mar 18, 2022 10:40:35 PM

I inherited some property and sold it. I received a 1099-S. Turbo Tax records it on a 1099-B. Does this matter?

I inherited some property and sold it. I received a 1099-S. Turbo Tax records it on a 1099-B when I type the information in the investments section - I cannot get it to record it on a 1099-S. I don't see an option to select a 1099-S. I'm usingTurbo Tax Premier online.

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1 Best answer
Level 15
Mar 19, 2022 5:33:21 AM

This is no designated place, in TurboTax (TT), to enter a 1099-S.  Where it goes, depends on what was sold. Entering it in the "1099-B section"  (Investment Income / Stocks, mutual funds, Bonds, Other) of TT is the correct way, in your case. Real estate is "other".  Answer no when asked if you got a 1099-B. 

 

When asked when you acquired this property, type the word, INHERITED. That will make the capital gain/loss  long term. 

 

The cost basis for inherited property is the fair market value (FMV) on the date of death.  If the property was not used for personal use, by you (not the decedent), it can be treated as investment property and any capital loss is deductible.  If you did use it for personal use, after acquiring it, check the box "any loss from this sale is not deductible" on the screen "Select any less common adjustments that apply"

 

 

5 Replies
Expert Alumni
Mar 19, 2022 4:42:34 AM

Yes, it matters. When you enter the information in the Investment section, you need to choose "Other". Then, on the second screen enter land or second home and that you inherited it.

 

 

 

Level 15
Mar 19, 2022 5:33:21 AM

This is no designated place, in TurboTax (TT), to enter a 1099-S.  Where it goes, depends on what was sold. Entering it in the "1099-B section"  (Investment Income / Stocks, mutual funds, Bonds, Other) of TT is the correct way, in your case. Real estate is "other".  Answer no when asked if you got a 1099-B. 

 

When asked when you acquired this property, type the word, INHERITED. That will make the capital gain/loss  long term. 

 

The cost basis for inherited property is the fair market value (FMV) on the date of death.  If the property was not used for personal use, by you (not the decedent), it can be treated as investment property and any capital loss is deductible.  If you did use it for personal use, after acquiring it, check the box "any loss from this sale is not deductible" on the screen "Select any less common adjustments that apply"

 

 

Level 3
Mar 19, 2022 8:43:32 PM

Thanks so much for your quick reply and I really love that you pasted the screen, but  I did exactly as you instructed and chose "Other" where it shows a 1099-S, indicated it was inherited, and completed the amount sold for etc., and when I'm all done it still shows it as a 1099-B on the screen that lists the investments and savings. Do you think this is a glitch in TurboTax Premier Online and if so what do I do? Thanks again so much for your help!

Level 3
Mar 19, 2022 9:11:37 PM

Thank you so much! I did as you instructed.

Level 3
Mar 19, 2022 9:19:18 PM

Thank you so much! I did as you instructed as this made since to me.