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I need to enter a 1099S for the sale of an inherited home however, the home was not a second home. It was the primary living residence since it's purchase.

Does it go under second home although it was not a second home in income and expenses section?
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LeeM
New Member

I need to enter a 1099S for the sale of an inherited home however, the home was not a second home. It was the primary living residence since it's purchase.

No, you would record it as your primary home. Actually since it was inherited, you qualify for an exception on the gain (if any) up to $250,000 (single) or $500,000 (married filing jointly) from the sale of the house according to IRS Publication 523.

You will need to report that 1099-S (see the instructions in the FAQ below), however keep in mind the exclusion mentioned above. 

Basis for Gain/Loss Calculation on Inherited Property

You will need to calculate your basis in the home first. Then TurboTax will subtract the Basis from the Proceeds from your 1099-S. Since you inherited your home, your basis in the home will be the number you use for "original cost." If the previous owner's death was in any year except 2010, your basis is the fair market value of your home on the date of the previous owner's death, or on the alternate valuation date if the executor of the estate elected to value the estate's assets as of six months after the owner's death. 

You may also want to review this answer for more information: https://ttlc.intuit.com/replies/3922066

Reporting 1099-S in TurboTax

You will want to type Home Sale in the "Search" box at the top of your screen. You will then select "Jump to Home Sale". (See screenshot below-you may need to click to enlarge).

You can then continue through the question interview to enter the sale of your primary (aka inherited home) using the proceeds from the 1099-S and the basis as determined above.


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1 Reply
LeeM
New Member

I need to enter a 1099S for the sale of an inherited home however, the home was not a second home. It was the primary living residence since it's purchase.

No, you would record it as your primary home. Actually since it was inherited, you qualify for an exception on the gain (if any) up to $250,000 (single) or $500,000 (married filing jointly) from the sale of the house according to IRS Publication 523.

You will need to report that 1099-S (see the instructions in the FAQ below), however keep in mind the exclusion mentioned above. 

Basis for Gain/Loss Calculation on Inherited Property

You will need to calculate your basis in the home first. Then TurboTax will subtract the Basis from the Proceeds from your 1099-S. Since you inherited your home, your basis in the home will be the number you use for "original cost." If the previous owner's death was in any year except 2010, your basis is the fair market value of your home on the date of the previous owner's death, or on the alternate valuation date if the executor of the estate elected to value the estate's assets as of six months after the owner's death. 

You may also want to review this answer for more information: https://ttlc.intuit.com/replies/3922066

Reporting 1099-S in TurboTax

You will want to type Home Sale in the "Search" box at the top of your screen. You will then select "Jump to Home Sale". (See screenshot below-you may need to click to enlarge).

You can then continue through the question interview to enter the sale of your primary (aka inherited home) using the proceeds from the 1099-S and the basis as determined above.


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