inherited home sale as personal home

If you owned and lived in the home for a total of two of the five years before the sale, then up to $250,000 of profit may be tax-free.  Follow the directions within the software to see what you qualify for.  See also this TurboTax Help.

To report the sale In TurboTax Premier Desktop, follow these steps:

• Across the top of the screen, click Federal Taxes.
• Across the top of the screen, click Wages & Income.
• Select I'll choose what I work on.
• Scroll down to Less Common Income.
• Click to the right of Sale of home (gain or loss).
• Follow the directions.

Per IRS Publication 551 (page 15), the basis of property inherited from a decedent is generally one of the following.

1. The FMV of the property at the date of the individual's death.
2. The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. 
3. The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. 
4. The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement.

So, if the inherited cost basis of the home is $300,000, your cost basis would be 70% x $300,000 = $210,000.

Hi James, 

My case is  inherited home sale as personal home

 Do I need to submit supporting documents (for example apprasial, grand deed, Revocable Living Trust, and Grant Deed into Living Trust, driving license, bank statement.. ect) to IRS? 

Can I upload supporting documents which I mentioned above to IRS via turbotax?

or

Do I need wait IRS to inform me to upload supporting documents ?