form 1099B

[mdd108]

I sold an inherited house not used for business. On form 1099b the question - what type of investment did you sell - no option for inherited house -  picked other and in in description said it was a house.  Is this correct?

[HelenC12]

Yes, house is correct. However, you shouldn't have gotten a 1099-B form. You maybe should have gotten a 1099-S form. 

Because these types of sales are considered investment sales, you need to enter this info in the investment section of TurboTax. Select the product you’re using for the right instructions.

• You’ll have to use TurboTax Premium to report the sale of a second home, an inherited home, or land.

TurboTax Online

TurboTax CD/Download

[mdd108]

@HelenC12  someone else on the site suggested  to use form 1099b -Form 1099-B is used to report capital gains and losses that a taxpayer incurs after selling certain assets through brokerages and barter exchanges. 

The 1099 s seems the better option

The 1099-S is used to report the gross proceeds from the sale or exchange of real estate and certain royalty payments.

I am using the premier turbo tax - online -  I have a loss on the sale of property  - not not sure how to access the form 1099 S

[mdd108]

@HelenC12 

I found the form 1099 s

[MarilynG1]

Yes, in TurboTax Online, in the Investments section, you can indicate you sold a 'second home' and that you received a 1099-S (whether you actually received one or not).

The Capital Gain/Loss is reported the same whether it was stocks or another investment that was sold on Schedule D.  It just depends whether it was Long Term/Short Term as far as tax rates go.

Be sure to add any Sales Expenses or Improvements made since you inherited the home to your Cost Basis  (which is the FMV on the date you inherited) when reporting the sale. 

Here's more info on How to Enter Sale of Second Home, Inherited Home or Land. 

@mdd108 

[mdd108]

@MarilynG1 if I choose second home - the program does not give me the loss on the sale of the inherited property ( based overseas) so I selected Other.   Is this OK? plus its not a second home - it's just a property I inherited 

[AmyC]

Yes, the program knows to put second home and inherited homes on the sch D to calculate the gain or loss. Second home is the correct option for the program to know how to enter your inherited home. 

See Where do I enter the sale of a second home, an inherited home, or land on my 2022 taxes?

[mdd108]

@AmyC   If I say the sale is a second home I inherited - after inputting the relevant information Message comes up It turns out you can't take a loss on your personal-use property.  This property sale was never a personal use property.  To use second home implies it was a holiday or vacation home which is was not.

[MayaD]

If you believe it’s an investment and was never a personal use property,

1.  Use Other under What type of investment did you sell?
2. Select I Inherited  for the question How did you receive this investment? 

[mdd108]

this makes sense - it would be good if there was an actual category for house - not personal use in the selection field