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A few years back my grandfather put my name along with my sister and father on the deed to his property. He has had this property for as long as I can remember and it was to be our inheritance. The property is in the middle of nowhere and noone wanted to live there so grandpa decided to sell the property and split the proceeds 3 ways and give us our inheritance in cash while he is still living. He pays rent to the new owner and will until he passes. How do I claim this on my taxes? The inheritance part asks for the date of death of previous owner. Do I report it as a sale of my first home? Second home?

193

Employee Tax Expert

Feb 7, 2023 8:27:20 PM

It is not an inheritance - your grandfather, according to you, is still alive. You will report that in the same section in which you report stock and other investment sales. To enter:

Type "Investment sales" in the search window and click Enter
Click on "Jump to Investment sales"
On the page with "Did you have investment income in 2022?" Answer Yes
On the page with "Did you have crypto income in 2022?" Answer No (you can revisit this section later if the answer is Yes). Then click on Continue
On the page with "Let's import your tax info" click on "Enter a different way"
Select "Other" to "OK, let's start with one investment type?" and click Continue
Enter the name of the person or firm that brokered this sale
On the page with "Now, enter one sale for _______", for "What type of investment you sold" Indicate "Land (personal use) "
Indicate "How did you receive this investment?
Enter the details of the sale, and the interview will walk you through entering the details of the sale

Since your grandfather "gifted" you the property, your tax basis is the same as his tax basis was. So you will need to get that information from him.

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