Question on 1099-S Inherited property sale

[Pjhouse23]

I upgraded to Premier and still don’t get the “On the next screen, choose Second Home and continue with the section until it completes.” I followed all the other steps and after the “did you get a 1099-B or a brokerage statement for these sales”  that I check No, it takes me to the same screen that says “ tell us about this sale” just like before! No place to enter second house or that is was an inheritance, it wants to add it to my income and tax me on it. 

[AmyC]

Instead, you get tell us about this sale. Follow these steps:

• Click on I'll enter one sale at a time, boxes drop down.
• Box 1 description Second home
• continue filling in the boxes.

Box 1d sale proceeds will match your 1099-S amount.

Box 1e cost basis (usually how much you paid) plus capital improvements plus selling expenses

@Pjhouse23

[Pjhouse23]

I was able to do that before I upgraded to Premier, I still don’t have any place to show it was inherited, so I have nothing to enter in line 1e, I need to be able to show this as an inherited property, i could have just put the full amount on both 1d and 1e without paying for Premier, I need the premier to allow me to show the second house as an inherited property,    

[AmyC]

Date acquired: inherited

Holding period: Long term

All inherited property is long term. The program should be accepting that. Technical is working on the other way to enter the sale.

[Pjhouse23]

I still don’t have the option to enter for sale of this property as an inheritance, You said “Technical is working on the other way to enter the sale.” Have they come up with a way to do that?

[Irene2805]

The reason you indicate that a property was inherited is that transactions involving inherited property are always long-term transactions.  Please follow these steps to enter the sale of an inherited home:

TurboTax Online

1. In the Investment Income section, click the Start/Update box next to Stocks, Mutual Funds, Bonds, Other
2. Did you sell any investments in 2020?  click the Yes box.
3. Did you get a 1099-B or brokerage statement?  click the No box.
4. On the Tell us about this sale screen mark the radio button I'll enter one sale at a time.  
5. On the screen, Now we’ll walk you through entering your sale details, the second box asks How did you receive this investment?  Select I inherited it from the drop down list,  [See screenshot below.]
6. Enter the information in the boxes that appear.  [If the property was inherited, select Long term for the holding period.]  

TurboTax CD/Download

1. In the Investment Income section, click the Start/Update box next to Stocks, Mutual Funds, Bonds, Other
2. Did you sell any investments in 2020?  click the Yes box.
3. Did you get a 1099-B or brokerage statement?  click the No box.
4. On the screen, Tell us about this sale, for Date Acquired you can enter inherited
5. For the Holding period, select Long term Box F.  [See Screenshot #2.]

[Pjhouse23]

Thanks

[Rob102]

Hello.  It is almost March and I am having the same issue that the other person here is having.  I have the Premier CD version of Turbo tax and there is no "Inherited Home" option that all the online instructions talk about.  I have a 1099-S for my Mother's home that I inherited and sold last year.  There is no clear path to enter data for this form.  Clicking on "Add another sale" does not give any other options... it just brings yo to the normal investment screen where my other investment accounts are (Ameritrade, etc.).  Is tech still "working on it"?  I want to make sure I do this correctly!  Thanks a lot!

[Irene2805]

In TurboTax CD/Download, enter the sale of an inherited home using these steps:

1. On the Wages & Income screen, in the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX?  Click the Yes box.
3. On the screen, Did you get a 1099-B or brokerage statement... click the No box.
4. On the screen, Tell us about this sale, mark the radio button, I'll enter one sale at a time.
5. Enter the information in the boxes that appear.  You will have to type in Inherited Home in box 1a.  For date of acquisition, you can either enter a date or "inherited."  [See Screenshot #1 below.]
6. Enter the total sales proceeds as well as the other information requested. 
7. Since this is a sale of an inherited property, select Long Term in the Holding Period box (no matter how long you owned it.)
8. Continue to the screen, Select any less common adjustments that apply.  
9. Mark the first box The reported sales price did not deduct all fees or selling expenses.  [Screenshot #2]  
10. Enter the sales expenses not deducted from the sales price entered earlier.

Screenshot #1

Screenshot #2

@Rob102

[Rob102]

Thanks so much! 

I'm assuming the Cost Basis is the value of the home the day it was inherited and the Sales Proceeds is the total sale price before expenses (box 2 on 1099-S).  I inherited the home March of 2020 and sold it in July of 2020 therefore I'm sure I can just put the same number (225,000) in both of these boxes. 

Thanks again for the help.  Hopefully they will fix this feature to make it easier for people to understand.

Cheers,

Rob

[JohnW152]

Actually, the cost basis is generally the value of the asset on the date of death of the previous owner when you've inherited property.

Please see Inheritance in the TurboTax article Cost Basis: Tracking Your Tax Basis for additional information.

[Rob102]

Thanks John.  Yes, I was referring to the date of inheritance being the date of death.  I am the Executor of the estate so I assume that the day I inherited the property is the day my mother passed (a sad day)!  =(

[bal4833]

Did not read down far enough.  Irene showed me the way.  Thought Turbo Tax interface not as clear as it should. But we got er done!

[gmelfy-1]

My wife sold the inherited property and got a 1099-S. After everything was settled she only received a check for $2,000.  The gross proceeds were $130,000.

[Cynthiad66]

You will enter the sale of an inherited home as the sale of a capital asset. You will be able to increase the basis in the home by the amount of eligible closing costs. 

You can enter this info in the investment section of TurboTax. Select the product you’re using for the right instructions.

1. Open or continue your return.
2. In the search box, search for sold second home and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
   • If you land on the Your investment sales summary screen, select Add More Sales.
4. On the OK, what type of investments did you sell? screen, select Other then Continue.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale.