Capital loss on inherited property

Forum|Forum|1 year ago
April 5, 2025
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I inherited property that was land, mobile home, and horse stables. The value of the property at the time of death was $225,000 and I sold it for $190,000 with closing cost of $16,781. The property was not used by anyone from the time of death until sale. I didn't think this would qualify as a capital loss but when I enter it into Turbo Tax Premier under Investments - Other and I specify it was inherited it shows a capital loss. Is this correct?

DianeW777

Yes. Inherited property is considered investment property if you did not use the inherited property for personal use. The loss is allowed to offset other income. A capital loss maximum of $3,000 is allowed each year if it exceeds total capital gains with any excess carried to the next tax year or until used up.

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