How do I report a short term gift and sale of real estate and input a 1099-s on Turbo Tax Home & Business 2024 Download

[OutdoorW]

I was gifted a 1/6 share of my Mom's home in November and the house was sold in December.

I received a 1099-S for my share of the sale.  I am using Turbo Tax Home & Business 2024 download version. When I follow the directions to report it as an investment, and then report as a sale of a second home - it only displays a 1099-B which does not generate the correct form to answer the questions of Fair Market Value, adjusted proceeds after the sale, etc.  How do I enter the 1099-S on this version of Turbo Tax?

I finished all of the business and personal income and deductions except for this. Please help!

Thanks,

Anne

[Vanessa A]

You are correct, it should be entered in the investment section. The entry for the proceeds and the previous owners cost basis are on one page together.  

If you enter this in the 1099-S section, it will be treated as your home. As long as you do not enter that you lived there more than 2 out of the 5 years, you should NOT get the Home Sale Exclusion deduction.

Either way, the sale will be reported on Schedule D.

[Mike9241]

it may not be short-term even though you personally held it for less than one year

The holding period for gifted property is determined by the donor's holding period. If the donor held the asset for over one year, the gain is considered long-term. 

If you sell the gifted property for more than the original basis, your gain is the sale proceeds over the original basis. If you sell the property for less than the fair market value at the time of the gift, your taxable loss is the difference between the sale price and the gifted fair market value.

if you sell for a price between the tax basis and fair market value where FV was less than tax basis there is no gain or loss, but you still have to report it.