Sale of inherited home - how to enter in Turbo Tax

[Stephen Szoradi]

My sister and I were deeded our mothers home upon her death in May of 2021.  We sold the property within 4 months in as is condition and split the proceeds.  We each received a 1099s.  While I don't believe we should be charged capital gains, I am not sure how to enter this in turbo tax.  Do we list it in the investment income section (Turbo Tax Premier), even though we did not receive a 1009-r or do enter it in the home sale section?  Currently, I have it entered in the Investment income section, but want to make sure this is correct.

[Mike9241]

sorry for your loss

each of you reports on form 8949/schedule D the sale proceeds per 1099-S (investment section)

for its tax basis, you each use 1/2 of the  date of death value 

in addition, you are allowed to deduct your share on selling expenses. 

if there is a loss it's only deductible if it was no personal use after she died

[Anonymous_]

In addition to what @Mike9241 wrote, ensure that you indicate the holding period is long-term (Box F) and type "inherited" as the date acquired. 

[Stephen Szoradi]

Thanks for the information.  I am still in need of clarification - the home was sold for $480,000.00.  So, the sales proceeds (box 1d in Turbotax I would enter 480,000.00 or would I enter 1/2 of that amount since I split the sale with my sister?  Same question for Box 1e, which is the cost basis total.

[Anonymous_]

You stated that you each received a 1099-S. If so, are the proceeds split?

Clearly, you would enter half of the sales proceeds (less selling expenses) and half of the adjusted basis.

[Stephen Szoradi]

Each of our 1099s forms list the total the home was sold for.  (480k).  It was not split.

[Anonymous_]

Then you should either request a correct 1099-S or do a nominee distribution. 

[Anonymous_]

In other words, you each report the entire amount on the 1099-S and then indicate you received one-half as nominee for the other (effectively, one-half is subtracted from your return).

[Stephen Szoradi]

That makes sense.  Thank you for your help.