Can you clarify. Was the 1099-S for the sale of your personal residence, or something else? If something else, what?
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The sale of an easement if it is a personal asset is to show it sold on Sch D of the personal return.
The amount received for granting an easement is subtracted from the basis of the property.
If only a specific part of the entire tract of property is affected by the easement, only the basis of that part is reduced by the amount received.
If it is impossible or impractical to separate the basis of the part of the property on which the easement is granted, the basis of the whole property is reduced by the amount received.
Any amount received that is more than the basis to be reduced is a taxable gain.
The transaction is reported as a sale of property
If you grant an easement on your property (for example, a right-of-way over it) under condemnation or threat of condemnation, you are considered to have made a forced sale, even though you keep the legal title.
Although you figure gain or loss on the easement in the same way as a sale of property, the gain or loss is treated as a gain or loss from a condemnation.
For additional information, please refer to the following link in IRS Publication 544:
Open your return in TurboTax and type Sale of Inherited Home in the search box at the top right and click on the Jump to link.
You will be able to add information for the sale of the inherited home as a sale of an investment property.
- Date sold: From your 1099-S
- Date acquired: Date of the decedent's death
- Sales proceeds: From your 1099-S
- Cost or other basis: same as proceeds.
Holding period is Long term.
Continue through the interview until you reach done. You will have no income or tax from this reporting. The property receives a step up in value upon the decedent's death to the Fair Market Value. Assuming the estate sold it for FMV or less, there is no gain to be taxed.