The inherited property was sold for less than FMV, never occupied, not used to produce income, and was sold to a random/unrelated party shortly after close of probate. TT adds code "F" in column (f) in section II on page 2, which makes the loss nondeductible. Why is the transaction nondeductible? (All research so far seems to indicate the loss is deductible in this situation. How can I make TT fill form 8949 differently??)
Yes, go in through the Stocks, Bonds, Mutual Funds link and choose Other from the Dropdown list.
This will be reported as an Investment Loss, rather than a loss on the sale of Personal Property (which is not deductible).
You don't actually enter your 1099-S, just the proceeds from it, but save it and record of any other closing costs you incur.
Here's more info on Sale of Inherited Home.
If you selected "Second home," "Land (personal use)," or "Personal items" the loss is not deductible.
In TurboTax you would report it as investment sale.
The basis of property inherited from a decedent is generally one of the following:
You can deduct the selling expenses from the gross proceed.
Sales expenses include:
Thank you for your response.
I received a 1099-S Form, so I entered it in TurboTax that way:
I entered the information requested, which resulted in form 8949 being filled with the "L" code in Part II column (f).
So, are you saying I should have selected "Stocks, Bonds, Mutual Funds"/"1099-B, 3922, 3921" button?
Yes, go in through the Stocks, Bonds, Mutual Funds link and choose Other from the Dropdown list.
This will be reported as an Investment Loss, rather than a loss on the sale of Personal Property (which is not deductible).
You don't actually enter your 1099-S, just the proceeds from it, but save it and record of any other closing costs you incur.
Here's more info on Sale of Inherited Home.
Thanks for your reply, @MarilynG1.
By entering type of investment = Other (not Second Home) results in the correct filling of form 8949. That did the trick. Thanks!