Proceeds from deceased parent's hous

[Phil_A_in_Roch]

My mother died 2 yrs ago; my brother was executor. He had the house sold; I received my share of the proceeds. I called the law firm handling the sale, they said they don't provide any tax forms e.g. 1098. How do I report this income?

[DavidD66]

You will report the sale sale of the property in the investment income section of TurboTax.  You should treat your half of  the transaction as if it was the entire value of the sale. (You will report 1/2 of the proceeds, 1/2 of the market value as the basis, etc.). 

The holding period for inherited property will always be "long term," and your cost basis is the value of the property on the date of death of the person you inherited it from (unless the estate elected an alternate valuation date, which is not common). 

Here are the steps to enter the transaction into TurboTax:

1. Click on Wages & Income.
2. Click on Show more beside Investment Income
3. Click on Start (or revisit) beside Stocks, Mutual Funds, Bonds, Other.
4. Click on Add Sales.
5. Answer No for "Did or will you receive a 1099-B...?"
6. Follow the prompts to enter the sale.  For the type of investment, select "second home" to get the most appropriate questions and categories for your sale.