To enter the sale (Form 1099-S) please see : Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?
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. or
- The FMV of the property on the alternate valuation date if the executor of the estate chooses to use alternate valuation. See the Instructions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.
If the date you received the inherited home is close to the date you sold the home, you may not have a gain so when you report the 1099-S, it won't have an effect on your income tax return.
However, if the property was rented or sold much later, versus when you inherited the home, you may have a taxable gain, if the basis increased.
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