What do I put for "Other increases to home adjusted cost basis" for selling my inherited property?

[rtpan]

I sold my primary home that I inherited and I'm not sure how to fill out the forms. I used the appraised value of the house when I acquired it as the original cost, per the example. Then I got to the "Other increases to home adjusted cost basis" page, which says if I recieved the home through an inheritance, to enter the increases to basis amount and description. Do I put the same amount as I did for the original cost and say the home was inherited? When I did, it said I don't owe any tax. Is this correct?

I also tried leaving this part blank and filled in the rest and was under the $250000 so I also didn't owe anything. I think this way may affect me if I were to buy/sell another house in the future? 

[RobertB4444 · Accepted solution]

"Other Increases to Home Adjusted Cost Basis" is not the value that you inherited.  You already entered that.  These are improvements that you made to the house that are not part of the expenses of sale.  If, for instance, you added a porch then this is where you would enter the cost for that porch.  It doesn't sound like this applies to you so you can skip the other adjustments section and still not owe any money.

This doesn't have any effect on buying a house in the future but you can only take that $250,000 primary residence credit on the sale of a home once every 2 years.  So if you buy another house and sell it within that time the credit won't apply.

After 2 years you're all good, though.