We sold our parents house last year after they died. How do I report that sell. We sold for a loss.

 

The sale of an inherited home is considered an investment sale and you need to enter this info in the investment section of TurboTax.You could use TurboTax Deluxe if you use the CD\Download version. Or use the TurboTax Online Premier or higher version. 

 

From @ColeenD3

To enter the 1099-S in TurboTax Online:

Click on Federal > Wages & Income

1. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 20XX?  Click the Yes box.
3. On the screen,  OK, what type of investments did you sell? mark the Other box and click Continue.
4. When you get to the screen, Now we’ll walk you through entering your sale details, enter the details of the sale.  You will be able to select the type of investment in the first box [second home, land, etc.]  
5. Enter the requested information and click Continue when done

Some things that can matter here that I just mention "just in case" it matters.

Did you inherit the property and then sell it "after" you obtained legal title to it? Or was is sold by your parent's estate?

Typically, an inheritance isn't taxable or reportable on the federal tax return. However, if you sell the inherited property you may be required to report that sale - especially if sold at a gain. But determining gain or loss depends on the cost basis of the property.

For inherited property the cost basis is the FMV of the property on the date of their passing - not the date you acquired legal ownership.

For property you gained ownership of before they passed, that's usually considered to be gifted property. Figuring the cost basis for that is a bit more involved, as a step-up in cost basis does not apply in such a situation.

If the property was sold by the estate, then in most situations there's a step-up in cost basis for the estate. Now while I"m not sure on this, but it may matter the type of estate too. For example, a life-estate created before they passed may (or may not for all I know) have an effect on the cost basis after they passed.