Question

1099S Sale of inherited home sold immediately at FMV but then deducted selling costs for a loss

Forum|Forum|1 year ago
February 14, 2025
1 reply
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1099S form a bit confusing under type of investment choices were 2nd home or other, if I choose 2nd home it does not allow deduction if I choose other it does?

It was an inherited home that was sold immediately at FMV (so no capital gain) however after adding it selling costs i thought it would then be a capital loss and give some type of deduction. if you enter it as 2nd home it does not give you a deduction , if you enter it as other then in other drop down state inherited and under description sold inherited home it will give you the deduction but not if 2nd home is checked so question is is an inherited home sold immediately at FMV classified as a 2nd home or Other?

TurboTax Premier Online

M-MTax

@Bigwig1 wrote:
if you enter it as 2nd home it does not give you a deduction...

I don't believe you can enter the sale as the sale of a second home in the program and recognize a loss because the program presumes the second home is used for personal purposes.

B

Bigwig1Author

exactly so does the 2nd home choice not include an inherited home that was sold immediately and the proper choice is "Other"

M-MTax

@Bigwig1 wrote:
exactly so does the 2nd home choice not include an inherited home that was sold immediately and the proper choice is "Other"

Apparently, you are correct; the second home option presumes that the home, whether inherited or not, was being held for personal use and no loss can be recognized.

You have to select "Other" and then "Other" as the type of investment from the dropdown. Then choose "I inherited it" from the dropdown as to how you received it.