Where do I enter in TT the closing costs on the sale of an inherited home?

[ccdugga]

We sold an inherited home which had been vacant 4 years and never rented.  I followed the link for sale of a second home and entered my 1099-S info which shows the gross amount of the sale.  I incurred realtor and lawyer costs deducted from my sale proceeds at closing.  How are these entered in TT ?

[MayaD]

You can deduct the selling expenses from the gross proceed.

 Sales expenses include:

• commissions
• appraisal fees
• broker's fees
• legal fees
• advertising fees
• home inspection reports
• title insurance
• transfer taxes or fees
• geological surveys
• loan charges (points) or other fees paid on the buyer's behalf
• any fees for a service that helped you sell your home without a broker (listing fees, promotional fliers, etc.) 

[ccdugga]

Yes, I know what can be deducted.  My question is how do I enter it in Turbo Tax ?  

[ThomasM125 · Accepted solution]

You add the realtor, lawyer and other closing costs to the cost of the property. 

[ccdugga]

OK, I went down that path only to find TT was not allowing a capital loss on the property.  My understanding is since we never lived in the house I can treat it as investment with capital loss, so would I enter it instead as an investment of type "everything else" ?  If so, is there a way I can show the closing costs as an adjustment to the gain/loss on form 8949 (columns f+g) ?  This would be consistent with the IRS instructions, but the interview questions don't seem to give me that option . . .

[MayaD · Accepted solution]

Yes, report it as investment sale.

1. Since you did not receive a 1099-B, answer “no” to the 1099-B question
2. Select Other for What type of investment did you sell?
3. Select I inherited for How did you receive this investment? 
4. Increase the basis (FMV) of the inherited property by the allowable closing costs.