I inherited a lot in 1960. Over the years, I had to pay lawyer's fees in order to obtain clear title to the property. I sold the lot in 2016. Where do I enter the lawyers fees in Turbo Tax?
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You would add the lawyer's fees to your basis in the lot, as if it were part of the original value when you inherited the lot.
Example:
If your basis (value at time inherited) was $100,000 and you spent $2,000 in legal fees to obtain clear title, your adjusted basis would be $102,000.
If you sold it for $200,000 and had selling costs of $5,000, your net proceeds would be $195,000.
Your resulting gain would be $93,000 ($195,000 minus $102,000).
Where do I enter the sale of a second home, an inherited home, or land?You would add the lawyer's fees to your basis in the lot, as if it were part of the original value when you inherited the lot.
Example:
If your basis (value at time inherited) was $100,000 and you spent $2,000 in legal fees to obtain clear title, your adjusted basis would be $102,000.
If you sold it for $200,000 and had selling costs of $5,000, your net proceeds would be $195,000.
Your resulting gain would be $93,000 ($195,000 minus $102,000).
Where do I enter the sale of a second home, an inherited home, or land?Still have questions?
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