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.
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
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.
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.
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.
Each of our 1099s forms list the total the home was sold for. (480k). It was not split.
Then you should either request a correct 1099-S or do a nominee distribution.
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).