Home Sale WKS what is it used for

[bhowe]

I created a new Estate Tax Return for an inherited house sale (1099S). I made sure the house wasn't listed as a investment. The K1 that generated has all blank fields. I don't think that is correct? 

I have to say, the estate portion of the software doesn't guide you thru the process very well. What is the "Home Sale WKS" used for? There was no walk thru on this. I believe this is where I list improvements required by home inspection and the FMV of the house? 

Thanks 

Bill

[Anonymous_]

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If there was a gain on the sale, then you have to allocate that gain to the beneficiary  (and allocate the gain to income) in order for the gain to be available for distribution, which will then appear on the K-1.

If there was a loss, the loss would be netted with other capital gains (if any). If the estate had a net capital loss, that would only be passed through to the beneficiary on the final return. 

The worksheet is essentially used for homes that are not inherited (i.e., purchased by a trust or estate). There is more granularity on the worksheet for the entry of the basis and sales price. For your purposes, you can simply list any costs incurred as sales expenses or add the costs to the FMV at the date of death and enter that figure as the basis.

[Irene2805]

The enter the sale of a home in an estate return, please follow these steps:

1. Click Federal Taxes > Income.
2. In Investment Income, click the Start/Update box next to Home Sales,
3. Go through the screens, enter the address and sales information.
4. You will be able to enter the Basis of the Home on the next screen.  If you want to make a note on the additions to basis, right-click on the Basis of Home box,
5. Select Add Supporting Details from the list. [See screenshot, below.]

          6.  You will be able to make entries on the list and the total will transfer to the main screen.  [See screenshot, below.]

For more information on Basis, please see IRS Pub. 551 - Basis of Assets.

[bhowe55]

I have 240934 as  the Basis for the home. I have 222,000 as the sell price. Loss on the sale of the house is -27,938. I run review in both fed and state (ma) and the K1 I print shows no field entries, none. That can't be right. I'd think it should show the numbers above and a loss on the form. 

[DianeC958]

A couple of things to check.  Switch to the forms mode by clicking on forms in the upper right hand corner of TurboTax.

On the left hand side you will see a list of forms.  Click on the Schedule K-1.  Check to make sure that you have an entry in Line B of the Beneficiaries Allocation Worksheet.  If this does not correct the issue or you have an entry in Line B then click on Dist Inc K-1.  This worksheet should show the amount of the loss for the home on line 4.  If there is not an amount there enter the amount of the loss.

If this is the is the final year of the estate the amount for the loss from the house should show on line 11 with a code C.

[Critter]

Did you mark the return as FINAL ?  

[bhowe55]

Yes, marked as final