What version of TurboTax do I use to include an inherited house & property?

[chas1103]

My siblings and I were put on our parents deed prior to our parents death. We were not entitled to the home,  or use of it, until after our parents death. The lawyer states that this is considered an inheritance. Do we have to use TurboTax Premier rather than the TurboTax Deluxe that we have used in the past? There is also a capital loss involved, as the house was sold to a non-family member at a loss compared to the present assessment.

[Anonymous_ · Accepted solution]

You can use Deluxe for your purposes if you are using an online version of TurboTax.

You can use any version if you are using a desktop version of TurboTax since desktop versions contain all of the forms.

[Anonymous_ · Accepted solution]

Additionally, your basis in the property is likely the fair market value on the date of your parents' death (specifically, the last to die). Ignore the assessed valuation since it is not relevant for the purposes of determining gain or loss on the sale.

You need to check with your attorney to ensure that adding your siblings to the title was not a gift (and it does not appear as if that was the case). It is more likely that you and your siblings acquired a remainder interest and your parents reserved a life estate (in which case the FMV on the date of death rule would apply).

Again, check with your attorney.

[chas1103]

I did find another community article which stated the need to use the Premier edition.

"Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes?"

(It should cover 2022 as well.)

Been trying to get hold of Download help to find out which version to use and how many individual tax returns I can file. Getting hold of someone is near impossible.

I did use my 2021 Deluxe version to estimate this years taxes, but It didn't show all the forms.

Thanks for your reply,

cv

[VolvoGirl]

If you use the Online version you will need to use Premier or the Self Employed version.  If you buy the CD/Download program you can buy any version.  All the Desktop programs have the same forms,  you just get more help in the higher versions.  

The CD/Download Desktop you buy and install the program, which can do unlimited returns. The returns are only saved on your computer and can not be accessed from anywhere else. And not saved at Turbo Tax. So Be sure to save Frequently and make backups. You get 5 federal efile for free, the rest you can mail.  In Deluxe and above you get 1 state PROGRAM download to prepare unlimited state returns (in that state). Each state return including the first one is $20 early or $25 to efile or you can print and mail the state for free. The Desktop programs do not have the expert help that is available to add to Online versions.

Desktop also has many other features and advantages over the Online version. You can do more than 1 return. You can see and enter into the actual forms. It has a What-If worksheet.  And the Desktop program is always available even after the year ends. Which is good if you ever need to amend your return after online website is closed or get audited and need your tax records.

You can buy the personal Desktop CD/Download program here,
https://turbotax.intuit.com/personal-taxes/cd-download

Window System Requirements
https://ttlc.intuit.com/community/system-requirements/help/minimum-system-requirements-for-turbotax-...

Mac System Requirements
https://ttlc.intuit.com/community/system-requirements/help/minimum-system-requirements-for-turbotax-...

[VolvoGirl]

Oh, for next year 2022 returns you need a higher version of Windows or Mac.   2022 Turbo Tax Desktop System Requirements  Windows 10 or later or Mac OS Big Sur 11 or later
https://turbotax.intuit.com/personal-taxes/cd-download/tta-system-requirements

[chas1103]

Thank you for your reply. We will have to check if the FMV and the assessed value are the same. As far as we know, we sold the house at a loss. we will verify it.

Thanks again,

cv

[Anonymous_]

@VolvoGirl is correct; if you use an online version of TurboTax, you will need to use Premier or Self-Employed (I was misreading the product matrix for the online versions on the web site). Regardless, you should definitely consider using a desktop version.

The assessed valuation is for the assessment of local property taxes and should not be used to determine your basis in the property. Ideally, you should get a date of death appraisal from a certified real estate appraiser.

[chas1103]

I file 4 returns a year, ours and 3 for our children and grandchild. Fortunately only one lives out of state, so I only have to buy one additional state program. So far the NYS returns have been free, but that could change. I'll have to go over my 2022 return again using the 2021 Deluxe version. It didn't display the federal 8949 form which I think is required. Having the CD rather than the download is handier in case the program gets corrupted and has to be reinstalled.

As far as backups, I keep 3 backups of my system and all my files and store them in different locations just in case of a problem.

Thanks,

cv

[chas1103]

The house was recently appraised, but we will check with the lawyer to see if we can claim the loss.

Thanks,

cv

[Mike9241]

if the property was sold in 2021 you need the desktop version since online prep for '21 is closed. if sold in 2022, the software is not yet available - probably in November or December 2022 depending on whether you use online or desktop. 

[Anonymous_]

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@chas1103 wrote:

The house was recently appraised, but we will check with the lawyer to see if we can claim the loss.

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You (and your siblings) will not be able to recognize a loss if the property had been held for personal use. 

If the property had been held for investment or business purposes, then a loss could be recognized.

Again, it is a good idea to consult with your attorney.

[chas1103]

We had no access or use of the house until both parents died. We never used or lived in the house prior to their death or before sale of the home. The lawyer states it is considered an inheritance.

Thanks,

cv

[VolvoGirl]

Actually getting the download is better now.  I'm switching from the CD.  Even though you can install  the Desktop program 5 times the CD has only been letting you use it once.  And it doesn't let you download it if you already used the CD.  That's been a big problem the last couple years.  

So if you get the CD then use the download option method.  How to install the Desktop CD/Download program with a License Code

How to install TurboTax CD/Download software with license code

[chas1103]

I only download it to my computer, but I may switch to the download if there is a problem with the CD's.

Thanks,

cv