Unfortunately, you cannot deduct the loss on the sale of an inherited property (second home) as the IRS considers this is to be the sale of personal use property.
See IRS
Pub 17: Personal Use
Property
If you used this property as a Rental, you may report a loss on the sale under Rental Properties. Or you can report this as an Investment Sale ("Everything Else") as a capital loss.
The
easiest way to find any section of TurboTax is to use the Search box at the top right side of the
TurboTax header. Click on the magnifying glass, type in the topic you need, hit
Enter, and click the "jump to" link to go directly to beginning of
that topic.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"