Sale of Inherited home with Multiple Beneficiaries

Forum|Forum|2 years ago
February 13, 2024
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How do I report my individual portion of the sale of inherited property by 5 beneficiaries when the 1099-S only shows gross proceeds of $375,000. I am confused about how to report my individual portion of the sale of the home when the Form 8949 Instructions state that I must use the exact amount ($375,000) as stated in the 1099-S as the proceeds in the Form 8949 and what to enter in the rest of the form as well as the Schedule D and still show consistency with the 1099-S.

Background:

Mother died -1/12/2023.

Death Appraisal 04/11/2023 $445,000.

Probate Court approves Quit Claim Deed for the 5 beneficiaries 05/31/2023 and approval to sell home.

Home sold with closing on 08/31/2023.

Gross Selling price $375,000

Seller Costs $44,023 but includes the $21,644 for which the 5 beneficiaries were reimbursed by individual checks for some expenses.

Copies of 1099-S, showing only $375,000 gross proceeds, were provided to the 5 beneficiaries at the end of closing.

There is no 1099-B. The Basis has not been reported to the IRS. The Executor is one of the beneficiaries and is not filing an Estate Tax Return, and there is no Nominee to submit Form 8971 and Schedule A's.

Best answer by PatriciaV

Enter only your share of the sales price, unreimbursed sales expenses, and basis (appraised value). Keep a copy of Form 1099-B in your tax file for this year, as well as all the inheritance information, in case the IRS has questions.

To enter this in TurboTax:

Go to Federal Taxes >> Wages and Income >>Investments and Saving >Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Click Revisit/Start
Choose to enter the information yourself
Click 1099-S and Continue
Type in a name for the sale
Choose type of investment you sold: Second Home from drop-down.
Follow the interview to enter your share of the Second Home Sale Information.

PatriciaVAnswer

Employee

To enter this in TurboTax:

Go to Federal Taxes >> Wages and Income >>Investments and Saving >Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Click Revisit/Start
Choose to enter the information yourself
Click 1099-S and Continue
Type in a name for the sale
Choose type of investment you sold: Second Home from drop-down.
Follow the interview to enter your share of the Second Home Sale Information.

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oharwoodAuthor

We did not get a 1099-B; only the 1099-S with gross proceeds. Do I still do what you described? Thanks.

MayaD

Yes.

In the search box, search for sold second home and select the Jump to link at the top of the search results.
Answer Yes on the Did you sell any investments in 2023? screen.
- If you land on the Your investment sales summary screen, select Add More Sales.
On the Did you get a 1099-B or a brokerage statement for these sales? screen, select No.
On the Tell us about this sale screen, select I’ll enter one sale at a time, and enter Other
Enter the remaining info for your sale and continue through the screens until you reach Here’s all the investment accounts we have so far.