Hello, I have an inherited house that was sold in 2024. In the TurboTax investment income section - "stock, crypto, bonds.....", I selected "Other" in the "type of investment" box, "I inherited it" in the "how did you receive this investment" box. What would be a good description for the "description" box? Should I just put something like "street name", "street name, house sale" or " street name, inherited house sale", or something else? Or does it matter since the date acquired box on form 8949 would show "inherited" already?
Correct.
The description doesn't really matter, it would only matter if you had many sales and you wanted to keep them separated and identifiable.
If you had a lot of sales, and you look at your tax forms, you might want name each sale in a way that you know what is being reported where on your forms.
What you name it won't change the way the sale is handled/reported.
Yes, you could use the Street Address as the description when reporting the sale of an inherited home. The 'inherited' designation automatically makes it a long-term investment sale.
Here's more info on Sale of Inherited Home.
To clarify, I can just type in the "street address" to the description, and that is sufficient. So I don't need to say "sale" or "inherited house sale" since I selected "I inherited it" on "date acquired" box in TurboTax, and TurboTax displayed "Inherited" automatically on column "b" on form 8949?
Just want to make sure that I am doing it correctly. There is not enough space to type in and display a long description.
Correct.
The description doesn't really matter, it would only matter if you had many sales and you wanted to keep them separated and identifiable.
If you had a lot of sales, and you look at your tax forms, you might want name each sale in a way that you know what is being reported where on your forms.
What you name it won't change the way the sale is handled/reported.