I received a 1099-S for real estate transaction however this was an inheritance that we sold, not a second home. how do I handle this? Thanks for any help

[SharonC1]

You will only have income on any capital gain on the sale. If there is a capital loss and this was not the sale of a personal use property (which is not deductible), you can report the loss as a capital loss. 

To know the actual amount of the capital gain or loss on this sale, you will need to know not only your sale's proceeds  but also your basis in this inherited property. Your basis in an inherited property is usually the Fair Market Value (FMV) at the time of inheritance plus any capital improvements made to the property since inheriting it (all in USD).

If you will type Capital Gains and Losses into the search bar of your TurboTax program, then click OK - you will be brought to the input screen where you record capital gains and losses (which is how your inherited home will be classified).

[SharonC1]

I see you responded "no" that my answer was not helpful.  Is there some clarification I can help with?

[sunshinetoday007]

I read on a post that this was not reportable as it was not a second home, there was no capital gain. sorry Im confused because of the conflicting information I have read

[SharonC1]

Did you ever live in it or use it?

[sunshinetoday007]

no never lived in it or used it we sold it approximately 8 months after he passed thank you

[SharonC1]

My answer is correct then.  I will link an IRS page with the same information since you have received conflicting information.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritan...>

[sunshinetoday007]

Thank you so much

[SharonC1]

You are welcome.  I am glad I was able to help.

[thlau2019]

Can you clarify how to report 1099S of an inherited house, NOT a second home?  The capital gains section has only "second home".   I  (widowed survivor) inherited from my deceased husband.  I lived in house over 8 years before selling. I'm trying to record step up in basis.

[DianeC958]

Since you are the spouse and you lived in the house before you sold it you report the sale of the house

• Federal
• Wages & Income
• Less Common Income
• Sale of Home

If your house was jointly owned you receive a step up in basis for 50% of the house to the date of death of your spouse.  Currently if you sold the house at a gain and owned it for 5 years and lived there for at least 2 of those 5 years, $250,000 of gain on the house is not taxable, since you are filing as Single.

If you sold the house at a loss, the loss is not deductible on a personal residence.