turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes & Forms (2024) on Mar 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

My mom passed away in 2020. Three brother inherited the home in 2021. Three brothers sold the home in 2024. How do I report this sale on tax return.

I do not have the fair market value of the home from 2020 or 2021.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
DMarkM1
Employee Tax Expert

My mom passed away in 2020. Three brother inherited the home in 2021. Three brothers sold the home in 2024. How do I report this sale on tax return.

Often the best way to get a fair market value on a real estate property is to enlist the help of a real estate professional. Perhaps the agent/office that handled the sale will be able to help.  They should be able to look up the past values of area comparable homes to get you a fair market value on the home the heirs sold.  

 

Finding the historical fair market value of a property can be challenging but you will need that to take advantage of the stepped up basis on the inherited property to reduce the taxable gains on the sale. 

 

Once you have that figure the heirs each will enter their part of the fair market value as the cost basis and their part of the sales price as the proceeds for the transaction for their tax returns.  There will also be an opportunity to enter their portions of selling costs to offset some gain as well (see link below).  

 

In TurboTax navigate to the "Investments" topic in the "Wages and Income" section.  Select "Add an Investment" and the "Other (land, 2nd home...) tile and enter the requested information.

 

Typically, the an inherited home sold soon after inheritance has little if any taxable gain. 

 

IRS Publication 523 has more detailed information on selling a home.  Refer to the section on basis adjustments for selling costs that can be used for example.              

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question