It depends if you actually received this house as part of an inheritance. If you didn't and your parents are still alive, the sale would be reported on their tax return unless the property was gifted to you at some point and signed over the title to you.
If the property was inherited or gifted to you, here is how to report.
- Go to Personal
- Personal Income
- Investment Income
- Stocks, Crypto Currency, Mutual Funds .....
- Answer yes on the first screen
- investment Type is Other
- Next mention the broker's name on who issued to 1099S
- Next screen asks what type of investment is it. Put in "Second Home".
- How did you receive? Select inheritance.
- When did you receive the investment? This is the day you inherited the house. Or if it was gifted, you would indicate it was gifted.
- Proceeds are the amount of the sale.
- Total Amount paid is the Fair Market Value on the date of death of either your mother or father. if it was gifted, you would need to know how much your parents paid for the property plus the improvements they made throughout the years and report his as the total amount paid.
- Continue through until the have reported the sale.
If you handled this transaction for your parents and i f they are still alive, then you would need to report this sale on your parent's return. If this was the case, reach back to us and we will explain how to report this on your parents return.
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