Question

1099-S from sale of an inherited property

Forum|Forum|1 year ago
March 8, 2025
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My siblings and I inherited my grandparent's home in Baltimore. We sold that property to another family member, and we each received proceeds from that sale. We also each received a 1099-S. Where in Turbotax do I enter the proceeds from the sale of a property that I never lived in?

D

DianeW777

The steps to enter the sale of your inherited home are shown here for you. Inherited property is considered to have been held long term and does receive the special capital gain treatment.

Your cost basis is the fair market value (FMV) on the date of death of the decedent. Use your share percentage to arrive at the correct amount.

The expenses of sale will reduce any gain or increase any loss as well. This is entered as the sale of investment property and can be entered as follows.

Open or continue your return (you can choose the Search box and type 'sale of second home' then use the Jump to link to enter your inherited sale) or follow the menu.
Under Wages & Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2024? screen
- If you land on the Your investment sales summary screen, select Add More Sales
On the OK, let's start with one investment type screen, select Other, then Continue
On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
On the next screen, select Other (choose this also for inherited homes) then select I inherited it under How did you receive this investment? (For TurboTax Desktop you can enter a description of 'Inherited Home' and long term holding period.