Sale of Inherited Property

[lth12]

My mother died in 1996 and left my dad 75% of their home and usufruct and the other 25% ownership of the home was equally divided between myself and my 2 sisters.  So each of own approx. 8.33% of the home.  My father lived in the home from 1996 until he just sold the property in September of 2024.  I received a 1099-S for my portion of the proceeds of the sale and I can't figure out where/how to add this money to my taxes- especially as I'm recording only 8.33% of the sale.  When trying to use TurboTax to add the 1099-S I'm asked a series of questions about if it's my primary residence and if I say no- it assumes it's a second home, rental property, vacation home.  None of these apply- it's inherited property that I never lived in.  Also- if I follow the prompts and enter sales price and FMV of the home in 1996- it assumes me responsible for all of the taxes and not my 8.33%.  Can someone point me in the right direction?

[DianeW777]

You won't really enter the sale using the 1099-S because it was not your home. Enter only your share of the sales price and your share of the cost basis (see below what your cost basis is required to be for gifts).

Use the following steps to report the sale of your inherited home.

1. Open or continue your return (you can choose the Search box and type 'inherited home' then use the Jump to link to enter your inherited sale) or follow the menu.
2. Under Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other 
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2024? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the OK, let's start with one investment type screen, select Other, then Continue
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
6. On the next screen, select  Other (choose this also for gifted homes) then select  I received it as a gift' under  How did you receive this investment? (For TurboTax Desktop you can enter a description of 'Gifted Home' and long term holding period.

The cost basis for you is the same cost basis that is was for your mother on the date of the gift. If there was any gift tax paid, then you could add that to your cost.

[lth12]

thank you for your response!

1. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale- Would this be the name of the real estate agent?

[PatriciaV]

Yes, you can use the name of the real estate agent. The answer to this question is for your information only. Enter the agent's name, the entity/person who sent you Form 1099-S, or a custom description that identifies the transaction (ex: Sale Proceeds from Inherited Property).