We have the cost basis from the Settlement Statement (HUD-1), and know the itemized expenses to prepare for sale. We have accessed the TurboTax section for "sale of a second Home". There does not seem to be a section for itemizing these expenses. The only hint I have seen is to combine them with the inherited cost basis to raise the values to compare with proceeds to determine profit or loss. If this is the correct way to do this, I will still need to document thes expenses for the IRS. How is this accomplished?
Yes, selling expenses are added to your adjusted basis in the house (this may include repairs you were required to do before closing, for example, from an inspection) for input in TurboTax under Sale of Second Home. Although this was an inherited house, you may find this info helpful: IRS Pub 523 Selling Your Home
Other improvements completed before the property was listed are directly added to your inherited basis. See IRS Pub 551 Basis of Assets.
Yes, selling expenses are added to your adjusted basis in the house (this may include repairs you were required to do before closing, for example, from an inspection) for input in TurboTax under Sale of Second Home. Although this was an inherited house, you may find this info helpful: IRS Pub 523 Selling Your Home
Other improvements completed before the property was listed are directly added to your inherited basis. See IRS Pub 551 Basis of Assets.