Yes it will be taxed as a capital gain. This would be considered an investment sale and reported as such. You can use the information below to enter the sale. First is to determine her cost basis for her share of the family home, if any.
- If she purchased it, then it would be here actual cost.
- If it was inherited, then the fair market value on the date of death (1/9) would be her cost.
Note: If it was inherited, be sure to select that type of property because TurboTax knows it would receive long term treatment regardless of time of ownership.
To enter your sale in TurboTax, follow these steps.
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2025?
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
- Click this link for more information. Where do I enter Investment Sales?
Lastly, if she had to pay any tax in Italy, then you may also qualify for the foreign tax credit or deduction.
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