Sale of Inherited Condo

[Boxster98]

My wife and her brother were on the title/deed of their mom's condo, and it was set up as a joint ownership with right of survivorship.  She passed away, so my wife and her brother inherited the condo.  The condo was sold at a loss.  Both received a 1099-S, but if you enter it using the form added to TurboTax ("Sale of Home"), there's no option to show it as and inheritance, and it thinks only my wife owned the condo.  As such, the capital gain is excluded.  Neither my wife or her brother had a financial interest in the condo.

If I enter it under investment income, it gives the option to indicate "inherited" and properly calculates the capital loss, but it says Form 1099-B.  Is that OK?

[Vanessa A]

The sale of a home is used only for when you sell your primary home.  To enter the sale of the inherited home, you will do this as an investment sale. 

It should not say 1099-B, it sounds like you are entering as a stock sale.  

To enter it as a sale of a home select the following:

1. Federal
2. Income
3. Show More next to Investment Income
4. Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) 
5. Select Other
6. Continue through and select second home for the type of investment
7. Answer how you obtained it
8. You will need to enter the selling price, dates and the FMV on the date of inheritance

This will generate form 8949 and a capital assets sales worksheet, but not a form 1099-B. 

[Boxster98]

Thanks....By entering it as a second home sale, it says you can't take a loss on a personal use property.  The property was never used for personal use, nor did the siblings have any financial interest in the property.  It was sold after the mom passed away, so it was vacant until sold.  Everything I've read says a capital loss can be realized, so is there another way it should be entered?

[Boxster98]

The only way the calculation seems to work is if you select "Other" in type of investment sold, but it then generates a 1099-B even if you select "I inherited it".

[ThomasM125]

You should choose Other for the type of investment sold on the screen that says Ok let's start with one investment type. You should then come to a screen that says Now enter one sale for your (name of investment), choose Land (other investment purpose). You can then enter your sales proceeds and fair market value  and the loss will be deducted on Form 8949. No form 1099-B entry is required.