Sale of inherited property -- how do i divide the loss between myself and my sibling?

If you each inherited 50% of the property, then you would only record 50% of the proceeds, selling cost and basis on your return to determine any gain or loss. You can find directions in the FAQ below AND by click on "How to enter my 1099-S" blue link at the bottom of the FAQ below.

Your sibling would include the other half. So, between both of your returns, you would have all of the proceeds, selling costs and basis recorded.

The inheritance itself is not taxable. However, since you sold the property, what matters here is the fair market value (FMV) of the property on the day it was deeded to you. If you sold it for more than the FMV, meaning you made a gain, then the gain is taxable. If you sold it at a loss, then you don't even need to report the sale, as you can't deduct that loss anyway, since it's inherited property.

BASIS DETERMINATION

A home's tax basis is determined in a different way when someone inherits a home after the owner dies. When you inherit property after the owner dies you automatically receive a "stepped-up basis." This means that the home's cost for tax purposes is not what the now-deceased prior owner paid for it. Instead, its basis is its fair market value at the date of the prior owner's death. This will usually be more than the prior owner's basis.

The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death.

You can enter the sale of that inherited property by entering it using the directions below (as a sale of investment) JUST REMEMBER TO ENTER ONLY YOUR SHARE OF THE AMOUNTS:

https://ttlc.intuit.com/replies/4241480

Where is this in the 2020 Turbotax.  What I found told me to go to the Investment Income >Stocks, Mutual Funds, Bonds, Other.  But it never asks me about the property being inherited so my loss is now showing as a deduction.

My father passed away in December 2019 and left his house to me and my two siblings.  After emptying the house, we listed the house with a realtor in March and sold it in April for market value.  I believe that the fair value as of my father's date of death was equivalent to the net sales price - since it was only three months or so from the date of death to the market pricing - resulting in no gain or loss .  There was no estate tax filing since the estate was relatively small.  Is it necessary for my siblings and I to report our respective portions from this sale on Form 8949?