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Returning Member
posted Feb 5, 2023 8:55:15 AM

Received 1099-S and where to record capital gains for inherited property that was sold

I received a form 1099-S for the 2022 sale of Real Estate (Land and Building) that I inherited in 2002 from my mom. The 2022 sale price was more than the step-up in basis or FMV in 2002, so I know I need to pay capital gains tax on it. However, where do I enter this information on Turbo Tax?  Hoping to receive step-by-step guidance on where to enter the information in Turbo Tax. Thank you.

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1 Replies
Expert Alumni
Feb 5, 2023 12:02:45 PM

The sale of an inherited home is considered an investment sale and you need to enter this info in the investment section of TurboTax. You could use TurboTax Deluxe if you use the CD\Download version. Or use the TurboTax Online Premier or higher version. 

 

To enter the 1099-S in TurboTax Online:

Click on Federal > Wages & Income

  1. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
  2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2022?  Click the Yes box.
  3. On the screen,  OK, what type of investments did you sell? mark the Other box and click Continue.
  4. When you get to the screen, Now we’ll walk you through entering your sale details, enter the details of the sale.  You will be able to select the type of investment in the first box [second home, land, etc.]  
  5. Enter the requested information and click Continue when done.