My sibling & I inherited then sold a house in 2024. Total gross preceed for me was 85K, 20 went immediately to back prop taxes. Do I need to report it/pay tax on this?

[mandimcd]

I have a 1099-S from the title company for full 85K. Am just not sure if I need to file, given the amount.

[SabrinaD2]

Yes, you will likely need to report the sale of the inherited property on your tax return, even if you don't owe any taxes on it. Since you received a Form 1099-S from the title company, the IRS will also likely receive a copy of the 1099-S.

Here are some concise points to consider:

• Step-Up in Basis: The basis of inherited property is typically the fair market value at the time of the decedent's death. This means you only pay capital gains tax on the difference between the sale price and the stepped-up basis.
• Capital Gains Tax: If the sale price exceeds the stepped-up basis, you may owe capital gains tax. The rates for long-term capital gains range from 0% to 20%, depending on your income level.

To enter your Form 1099-S in TurboTax, follow these steps:

1. Open or continue your return - be sure you are signed in for link in step 2 work
2. Navigate to the sold second home screen:
   • TurboTax Online/Mobile: Go to sold second home.
   • TurboTax Desktop: Search for sold second home and select the Jump to link.
3. Answer Yes on the Did you have investment income in 2024? screen, then Continue.
   • If you land on the Your investments and savings screen, select Add Investments.
4. Follow the onscreen instructions.

For more detailed instructions, you can visit the TurboTax support page here