My mother-in-law died in 2021. Her condo was left to her children (my wife and brother in law) they sold the property and split the proceeds. How do i report this.

[PattiF]

You will report your portion of the sale of the property in the investment income section of TurboTax.  Treat the transaction as if its entire value is your 1/2 portion.  (You report 1/2 of the proceeds, 1/2 of the market value as the basis, etc.). 

For inherited property, the holding period will always be "long term," and your cost basis will be the value of the property on the date of death of the original owner (unless the estate elected an alternate valuation date, but this is not common). 

Here are the steps to enter the transaction into TurboTax:

1. Click on Wages & Income.
2. Click on Show more beside Investment Income
3. Click on Start (or revisit) beside Stocks, Mutual Funds, Bonds, Other.
4. Click on Add Sales.
5. Answer No for "Did or will you receive a 1099-B...?"
6. Follow the prompts to enter the sale.  For the type of investment, select "second home" to get the most appropriate questions and categories for your sale

Fair market value at the date of death of the mother should be determined if not by an actual appraisal at that time then by comparable properties at that time. 

A Realtor should be able to provide you with a reasonable FMV for your property at the time of the mother's passing. 

You are not able to deduct a loss on the sale of the inherited property.