Where is schedule d, form 8949, sales and depositions of capital assets for the sale of an inherited house?

[nwh76]

Can your take me to schedule d?

[DawnC]

You want to go to Investment Sales and Select Other for the sale of an inherited home.  Where do I enter the sale of a second home, an inherited home, or land on my 2025 taxes?

You’ll have to use TurboTax Premium to report the sale of an inherited home or land.

1. Open or continue your return.
2. Navigate to the sold second home screen:

TurboTax Online/Mobile: Go to sold second home.

TurboTax Desktop: Search for sold second home and select the Jump to link.

1. Answer Yes on the Did you have investment income in 2025? screen, then Continue.
2. If you land on the Your investments and savings screen, select Add Investments.
3. Follow the onscreen instructions.

[nwh76]

I have improvements made to the inherited home to enter into form 8949.  These improvements to the home increased it's value.  The basis at the time of my mothers death was increased by the improvements. I held the property for 5 years prior to selling it.  The improvements more than cover the gains on the sale of the home.   

Thanks,

nwh

[DianeW777]

Yes, you are correct. The improvements made to the inherited home become part of your cost basis of the home. Inherited  value on the date of death (or alternative stepped up basis) plus your cost of capital improvements should be the total entered in the sale of your inherited home. This must be done in the Step-by-Step process shown below, and cannot be entered directly on Form 8949.

If you should have a loss, and you never used this home as your personal home, you would also be allowed to use that loss against other income.

Your cost basis is the fair market value on the date of death of the decedent, plus the capital improvements (not repairs but improvements that are capital in nature).  The expenses of sale will reduce any gain or increase any loss as well. This is entered as the sale of investment property and can be entered as follows.

Enter the inherited property sale in TurboTax using the steps provided.  

1. Open or continue your return: Choose the Search box and type 'sale of second home' then use the Jump to link to enter your inherited sale) or follow the menu. In TurboTax Online select 'See more' in the FAQ then click 'sold second home'.
2. Under Wages & Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2025? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the OK, let's start with one investment type screen, select Other, then Continue
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
6. On the next screen, select  Other (choose this also for inherited homes) then select  I inherited it under  How did you receive this investment? (For TurboTax Desktop you can enter a description of 'Inherited Home' and long term holding period).
7. Enter the cost basis described above, including the improvements and selling price, selling expenses, etc.

@nwh76