Stepped up basis of home

[Anonymous]

My wife passed in 2021 and I sold our home in 2022.  I have a real estate appraiser’s evaluation of the property on the date of her death.  I do not live in a community property state.

Where do you input entries in TurboTax to show her stepped up basis of the home when she died?

[NCperson]

There is nothing to enter for your 2021 tax return 

since you sold in 2022, it’s for next year 

whatever the appraised value was determined to be, HALF of that is added to the cost basis to reflect the “step up” , but that is for next year 

[Anonymous]

Understood.  When I do complete my 2022 taxes, where or how would I input entries in TurboTax to show her stepped up basis?

[Anonymous_]

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@Anonymous wrote:

When I do complete my 2022 taxes, where or how would I input entries in TurboTax to show her stepped up basis?

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In the Less Common Income section you will find Sale of Home (gain or loss) where you will enter the details of the transaction.

You will, however, have to calculate your (partially stepped-up) basis manually and then enter that figure into TurboTax.

[rjs]

You don't show the details of your basis calculation on your tax return. When TurboTax asks for the Adjusted Cost Basis you can just enter the basis that you calculate, including the step-up.

In some versions of TurboTax there is an optional EasyGuide that you can use to calculate the basis. In the EasyGuide you can enter the step-up as an adjustment that increases your basis. In some cases it will ask specifically if you had a spouse who died. It's not clear to me what conditions make it ask that question. But any details that you enter in the EasyGuide are only internal to TurboTax, to guide you through calculating the basis. The only thing that actually appears on your tax return is the final basis amount. You do not have to use the EasyGuide.