Where do I report Proceeds from sale of a home that was inherited? I received a SSA 1099-S

[leggett683]

Where do I report Proceeds from the sale of a home that was inherited?

[JamesG1 · Accepted solution]

Assume that the home that was inherited is a home that you have not lived in or have not lived in within the last five years.  If this correct, in TurboTax Online, under the search microscope in the upper right hand corner of the screen, enter 'sale of second home'.  Click on 'Jump to sale of second home'.

The sale is recorded as the sale of an investment.  Or you may follow these steps.

1. Click on Federal down the left side of the screen.
2. Click on Wages & Income down the left side of the screen.
3. Scroll down to Investments and Savings and click the down arrow to the right.
4. Click Start / Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other.
5. At the screen Let's finish pulling in your investment income, select Add investments.
6. At the screen Save time and connect your financial accounts, select Enter a different way.
7. At the screen How do you want to add your docs?, select Type it in myself.
8. At the screen OK, let’s start with one investment type, click Other, land, second home, personal items, 1099-S).  Click Continue.
9. At the screen Tell us more about this sale, enter the information.  Click Continue.
10. Under What type of investment…., select Second home.
11. Enter the sales information.  You may or may not have received an IRS form 1099-S.

If you inherited a home, the cost basis is likely the value of the home on the date of the decedent's death.

Per IRS Publication 551 page 15, the basis of property inherited from a decedent is generally one of the following.

1. The fair market value (FMV) of the property at the date of the individual's death.
2. The fair market value (FMV) on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. 
3. The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. 
4. The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement.

[snark78]

How is this done with TurboTax Premier desktop?

Issues:

* there is no search. It's been replaced by worthless AI Help,

* There is no mention of Form 1099-S

[Karis_F]

To report the sale of an inherited home in TurboTax Desktop, go to Personal Income>Investment Income>Add Investments. 

Select Skip Import, then pick up on the steps that JamesG1 provided, starting with Step 8.

[snark78]

Thank you Karis.

My expectation was wrong. I expected Turbo Tax to generate form 1099-S in my return. But I see that it is Form 8949 and that is transferred to Schedule D.

I even upgraded from TurboTax Deluxe to Premier because I was told that's what it takes to perform this transaction. I don't think this is true.