Great question!!
I am going to assume two things:
1. You inherited the home from your Mom:
If you inherited the property, you will use the Fair Market Value (FMV) on the date of her passing to determine the cost. The gain will be a long term gain if the property was owned more than 1 year and you would figure that gain by taking the sale price minus FMV of the property, minus any improvements after it was inherited, minus and expenses to sell the property (realtor fees, title fees). You will only use fees that are for the sale, not property taxes, utility fees or HOA fees paid at the time of closing. Property taxes paid can be entered in the deductions and credits section of Turbotax.
You'll make the entry by clicking on the Federal Taxes tab, then Wages & Income, then scroll down to Investment Income and select Stocks, Mutual Funds, Bonds, Other.
Respond "yes" to Did you sell any investments? You'll then be asked Did you get a 1099-B or brokerage statement? and you'll answer "no." Then you'll be shown a list of various investment sales and you'll select "land."
You'll be taken to the screen that says Enter Land Sale Information and you'll be able to enter your information. Be aware of the tiny box that says "I paid sale expenses not included in proceeds," as it must be checked if applicable to you.
Then hit "continue" and follow the prompts, where TurboTax will ask you follow-up questions.
2. Your Mom is still alive: Then she will claim it on her tax return. She will be able to most likely qualify for an exemption of up to $250,000. (I am assuing that she is single. If she is filing Married Filing Jointly, she can qualify for an exemption of up to $500,000) I have a link there that will go over the exemption in more detail.
https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...
To enter the sale of her main home in TurboTax:
- Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in, click Take me to my return, then click Pick up where I left off.)
- Click My Account (top right of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the search bar, type sale of home.
- In the results box, highlight sale of home, then click GO.
- You'll land on the Sale of Your Main Home page. Click Yes and follow the onscreen instructions.
Please give me a thumbs up if this was helpful.
Katie S.
Katherine S 63
