It depends. If this was not your main home then it will be reported as the sale of a second home. If it was inherited you would also need to select that for the correct tax treatment. Assuming you did inherit it and it was not your main home enter the sale as follows: This is considered investment property, report the sale using the steps below: Under Income and expenses scroll to Investments & Savings Select Start/Revisit beside Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) Select Add Investments or continue to go through the screens to select 'Other' > Continue Begin to enter the sale description > Under Type select Other > Under How did you receive select 'I Inherited it' (if applicable) For TurboTax Desktop you would enter the description 'Inherited Property' and select 'Long Term' as the hold period Enter your sale date and 'Various' as the Acquired date by selecting 'Something other than a date' Continue to complete the screens until you arrive back at the Wages & Income main page.Inherited property is always considered to have a long term holding period which provides favored tax treatment.Cost basis for inherited property, if you were not a previous owner (name on property before the death of your father), is the fair market value (FMV) on the date of death. If the sale occurs relatively soon after the death of the owner then the FMV would be very close to the selling price as a rule. Check with the executor or a real estate company or the court records for other sales of similar property if necessary. If your father is still alive and need to report this on his return it would be a sale of his home. Please update here if you have more questions and we will help.

Question

how do I report the income I made from the sale of my dads home

Forum|Forum|1 year ago
February 17, 2025
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DianeW777

It depends. If this was not your main home then it will be reported as the sale of a second home. If it was inherited you would also need to select that for the correct tax treatment.

Assuming you did inherit it and it was not your main home enter the sale as follows:

This is considered investment property, report the sale using the steps below:

Under Income and expenses scroll to Investments & Savings
Select Start/Revisit beside Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Select Add Investments or continue to go through the screens to select 'Other' > Continue
Begin to enter the sale description > Under Type select Other > Under How did you receive select 'I Inherited it' (if applicable)
For TurboTax Desktop you would enter the description 'Inherited Property' and select 'Long Term' as the hold period
Enter your sale date and 'Various' as the Acquired date by selecting 'Something other than a date'
Continue to complete the screens until you arrive back at the Wages & Income main page.

Inherited property is always considered to have a long term holding period which provides favored tax treatment.

Cost basis for inherited property, if you were not a previous owner (name on property before the death of your father), is the fair market value (FMV) on the date of death. If the sale occurs relatively soon after the death of the owner then the FMV would be very close to the selling price as a rule. Check with the executor or a real estate company or the court records for other sales of similar property if necessary.

If your father is still alive and need to report this on his return it would be a sale of his home. Please update here if you have more questions and we will help.