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You should only get a 1099-S in your name if the house was transferred to your name and then "you" sold it. (Even if the lawyers handled the details.) This is usually smarter because it avoids some of the taxes that the estate would likely have to pay if the estate sold the house.
You owe capital gains tax on any gain from the sale. Your gain is the difference between the sales proceeds and your cost basis. You inherited a stepped up cost basis when you inherited the house--your cost basis is the fair market value on the date your relative died. Assuming you sold the property in a reasonably close time to his death, then the sales price and the cost basis are the same and you don't actually have a gain to be taxed. But since you received a 1099-S form you will need to report the sale.
In Turbotax, go to "Sales of stocks, bonds and other assets." Don't use "your house" because you didn't live there, use "other property." The cost basis is the value on the date he died, the date acquired is the date of death, and the method of acquisition is inherited. The rest should be simple.
You should only get a 1099-S in your name if the house was transferred to your name and then "you" sold it. (Even if the lawyers handled the details.) This is usually smarter because it avoids some of the taxes that the estate would likely have to pay if the estate sold the house.
You owe capital gains tax on any gain from the sale. Your gain is the difference between the sales proceeds and your cost basis. You inherited a stepped up cost basis when you inherited the house--your cost basis is the fair market value on the date your relative died. Assuming you sold the property in a reasonably close time to his death, then the sales price and the cost basis are the same and you don't actually have a gain to be taxed. But since you received a 1099-S form you will need to report the sale.
In Turbotax, go to "Sales of stocks, bonds and other assets." Don't use "your house" because you didn't live there, use "other property." The cost basis is the value on the date he died, the date acquired is the date of death, and the method of acquisition is inherited. The rest should be simple.
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