Inheritance on sale of house was not a capital gain

[biggz65]

house was sold at a slight loss and divided by 5 aires

[HelenaC · Accepted solution]

Please see the information on how to enter the sale of an inherited home. You would report 1/5th of the sale proceeds. Please pay special attention to the cost basis of the property. 

The sale of an inherited home is entered in the investment section of TurboTax. Follow these instructions:

1. Open your return in TurboTax.
2. In the search box, search for sold second home (use this exact phrase) and then click the "Jump to" link in the search results.
3. Answer Yes on the Did You Sell Any Investments? screen.
   • If you land on the Here's the investment sales we have so far screen, click Add More Sales.
4. Answer No to the 1099-B question.
5. On the next screen, select Second Home (choose this also for inherited homes) or Land. Click Continue.
6. Follow the on-screen instructions to completion.
7. 
   

The basis of property inherited from a decedent is generally one of the following:

• The fair market value (FMV) of the property on the date of the decedent's death.
• The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation. See theInstructions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.

Report the sale on Schedule D (Form 1040), Capital Gains and Losses, and on Form 8949, Sales and Other Dispositions of Capital Assets:

• If you sell the property for more than your basis, you have a taxable gain.
• For information on how to report the sale on Schedule D, see Publication 550, Investment Income and Expenses.